COMPARE THE STANDING TATA MOTORS vis-á-vis THE INDUSTRY
& CUSTOMER SATISFACTION SURVEY
TATA Motors Ltd.
INDIAN INSTITUTE OF PLANNING & MANAGEMENT
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 LOVELY PROFESSIONAL UNIVERSITY is my original work. Miss. Sukhwinder Arora submitted for the requirement of a degree programme of
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.
Arun Kumar Guleria
ARUN GULERIA email@example.com
B.B. organizes and interprets information 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. by which an individual selects.A. One has to be a good learner to sharper knowledge in the particular field to achieve and attain the desired goals and heights. The responses were collected from 100 respondents from various areas of Mandi. ‘Finance Management is the systematic and objective identification. program at Lovely Professional University. To compare the standing TATA Motors vis-á-vis the industry. I analysis the financial position of TATA Motors and conducted a financial analysis of two of its competitors – Mahindra & Mahindra and Maruti Udyog. 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. I used research questionnaires as the research and data collection tools. collection. Profit & Loss Account. and Ratio Analysis. I used Balance Sheet. I had learned lot during my project on compare the standing TATA Motors vis-á-vis the industry & customer satisfaction survey of TATA Motors. which help us to develop from a normal human being into a disciplined. Jalandhar. And I also conducted Customer Satisfaction Survey of TATA Motors in the Mandi District of Himachal Pradesh.A program.PREFACE
The professional training is the internal part of a M. dissemination. I hope this will be helpful to find out financial standing of TATA Motors in automobile industry and satisfaction of consumer in Mandi city. analysis. and use of information for the purpose of improving decision making related to identification and solution of problems and opportunity” Perception is the process.com
. and dedicated professional. I was supposed to work the organization. Cash Flow and Fund Flow Statement.
ARUN GULERIA firstname.lastname@example.org
3.3 New Version Of Indigo .1 Industry Overview 8.
(i) (ii) (iii) 7 10 14 15
Declaration Acknowledgement Preface Executive Summary Introduction Literature Review: 6.3 Important Developments 8.4 June 2009 Domestic Sales At 43.6405 Crores. Loss After Tax Rs.2 Concept vehicles 9.Tata Motors Limited 11. 9.2 Capital Structure 12.1 TATA Group Companies Profile Of Tata Motors Limited: 8.054 Nos.5 Future Challenges 8.Indigo Dicor 10.3 Weighted Average Cost Of Capital ARUN GULERIA 12. Pat Grows 58% To Rs.244 Nos 6. 2. 12.4 Tapping Of Rural Markets SWOT Analysis .1 Launch Of Tata Nano 10.514 Crores 6.com Analysis 12. 6.3 Commercial vehicles Marketing Strategies: 10.2 History Of Tata Motors 8.
Page No.7 Awards Products Of Tata Motors: 9. 4.4 Global Operations 8. 7. 6.S. 10. 2505.1 Financial Overview 12.1 Tata Motors July Sales At 48.85 Crores.2 Modification In Tata Sumo 10.
16 17 18 19 20 21 24 27 32 35 37 39 39 48 51 52 57 58 58 59 60 62 62 69 71 72 73 76 77 78 79 81 84 87
.6 Milestones 8.25 Crores 6.5 Financial Analysis Of Tata100 Motors Global Automobile Industry 13. 70938.7 Consolidated Revenue In 2008-09 Rs.8 Effect Of Inflation On Car Market Profile Of Tata Group: 7.5 First Jaguar Land Rover Showroom Opens In India 6.
1. Financial Analysis: 12.2 First Quarter Stand-Alone Net Revenue Rs.3 Delivers First Tata Nano In The Country In Mumbai 6.1 Passenger cars and utility vehicles 9.No. 5. 8.4 Balance email@example.com Tata Motors To Introduce Air Car 6.
Economic and the industry environment Cost saving initiatives Awareness regarding the facilities provided by Tata Motors.
THE REPORTS IS DIVIDED INTO VARIOUS SECTIONS: 1. This part recognizes the achievements and rewards the company has achieved. Overall opinion about Tata Motors. The main objectives of the project are: Financial performance in automobile industry Market performance Market position. This section also describes the kind of technology used.
. it also gives little insights into what company offers to the Corporate and the Consumers.EXECUTIVE SUMMARY
The project on COMPARE THE STANDING TATA MOTORS vis-á-vis THE
INDUSTRY & CUSTOMER SATISFACTION SURVEY based on financial
performance and on customer survey. 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. Company Overview:
This part describes the company profile. 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. Company Profile:
ARUN GULERIA arun_guleria@ymail.
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 satisfactory on all other parameters: knowledgeable sales persons . Analysis of Financial:
Financial statements of the company over last few years are analysis in this section and financial performance is output.
ARUN GULERIA arun_guleria@ymail. Competitors of company:
The company’s competitors are finding and study the business during the financial years. employees spent enough time before and during sales. Given the economic and the industry environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary.
4. This section also products of the company producing by the company.
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.
5.This section gives the information about the company. While a pick-up in its CV volumes is evident. Comparison of company’s financial statements with competitors:
Comparison of company’s Balance Sheet. On an average more than 73% people feel that the prices are affordable whereas 12% do not agree. operating leverage and cost saving initiatives will improve margins.
3. Profit & Loss Account and Fund and Cash Flow Statement with their competitor to find the standing of company in automobile industry. 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. It includes the company history which depicts the company from the period of foundation. display of merchandise is attractive.com
service at TATA Motors service station is excellent. The overall opinion about TATA Motors is very good. vehicle in good condition. prices are affordable. responds to complaints quickly. décor of the waiting area is pleasing. variety of merchandize. careful with personal information and is value for money .com
. attractive discounts are offered.
At the end it is submitted to “Lovely Professional University”
ARUN GULERIA firstname.lastname@example.org of product.
ARUN GULERIA arun_guleria@ymail.
India's GDP is set to double over the next decade In percentage terms.000 crore) mark.
• India eyes 25 million automotive jobs. the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42.India is an emerging country with huge potential.and three-wheelers. The country is already off to a good start.00. plus a further 5 million two. The automotive industry is at the center of India’s new global dynamic. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available.com
ARUN GULERIA arun_guleria@ymail. 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 automotive industry's contribution should also double. 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. 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. Manufacturer’s product lines are being continually expanded. with a well-developed components industry and a production level of 1 million four-wheeled vehicles a year. as is the local automotive manufacturing base. In dollar terms. 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 high up the automotive value chain.
Based on Max Pemberton's unique relational long-term forecasting model.The implications.
Future of the Automobile in the Economy:
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. materials usage. demographics. it forecasts car and CV sales. market drivers and scope of a future massive Indian vehicle market are covered in the India Strategic Market Profile. a brand-new forecast of Indian automotive and related activity to 2020. auto industry employment. and explains their inter.year of healthy growth in auto industry.
keystone predicts that India will become world’s third largest automobile market by 2030.US based consultancy.
INDIA THEN & NOW
Number of brands Number of models
2008 • • Number of brands Number of models 30 70
ARUN GULERIA arun_guleria@ymail. Overall size expected to exceed 20 million with compounded annual growth rate of over 12%.com
ARUN GULERIA arun_guleria@ymail.
(65..729 vehicles sold in July 2008. growth of 18% M&HCV sales record year-on-year growth after almost a year
.563 nos.422 nos.028 Tata + 7. was lower by 19% over last year. compared to 172.652 Tata + 412 Fiat) in July last year. a 32%
ARUN GULERIA arun_guleria@ymail.... Commercial Vehicles The company’s sales of commercial vehicles in July 2009 in the domestic market were 28.455 vehicles in July 2009 were lower by 34% compared to 3.690 Fiat) in the domestic market in July 2009. The company’s domestic sales of Tata commercial and passenger vehicles for July 2009 were 45..033 nos.696 vehicles in July last year.381 vehicles sold in July last year. a growth of 18% over 40.
.Released on: 3rd August. grew by 21% over July 2008. a growth of 4%. M&HCV sales stood at 10.Ashish Garg
Tata Motors total sales (including exports)
of Tata commercial and passenger vehicles in July 2009 were 48. lower by 29%.191 Tata + 2. (17. a 27% growth compared to 22..813 Fiat) last year. a growth of 7% over last year. a growth of 14% over July last year.537 nos. lower by 22% over July last year.572 nos. against 67.408 nos.. The Indigo range recorded sales of 3.750 nos. (63. LCV sales were 17. The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent. was lower by 1%.462 nos.499 nos.475 nos.. at 14. The Indica range sales were 8. Exports The Company’s sales from exports at 2.638 nos.544 Fiat). Cumulative sales of the Indigo family were 12.. Cumulative sales of the Indica range at 37.746 Tata + 1...855 nos. and the sales were 2. Cumulative sales of the Sumo/Safari range were 10. lower by 29%. The cumulative sales from exports for the fiscal at 7.284 nos. sold last year.559 nos. were lower by 40% over 12...com
increase compared to 15. sold in July last year.180 nos. Nano sales were 2. The UV/SUV range of Sumo/Safari accounted for sales of 2.054 nos. a 23% growth over 37. Sales of Tata cars.881 nos. flat compared to July last year.054 vehicles.690 nos. Dispatches of the Tata Nano began during the month. 2009
Tata Motors July sales at 48.676 nos.412 nos. turning positive after almost a year with a growth of 6% over July last year and the highest since September 2008 Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100. Cumulative LCV sales were 63.. in the same period last year. The company began the sale and deliveries of the Jaguar and Land Rover range through the brands’ flagship store in Mumbai. reported a growth of 13%. a growth of 32% over last year.064 nos. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70. a growth of 44% over July last year. (14.475 nos.658 nos. while M&HCV sales stood at 37.168 nos. Passenger Vehicles The passenger vehicle business reported a total sale and distribution offtake of 19.599 nos. Cumulative sales (including exports) for the company for the fiscal at 171.464 nos.
albeit slowly. 2009
Tata Motors First Quarter Stand-alone net revenue Rs. of the financial year 2009-10. investments and working capital requirements and depreciation at Rs.846 units but have been growing sequentially every month of the quarter breaking into positive growth in June.44 crores in the corresponding quarter previous year.5. 2009.345. PAT grows 58% to Rs.513.326. except in the case of the heavy truck segment.4% (from 7. in response to infrastructure development.Released on: 27th July.59 crores).6% compared to Rs.12 crores was higher by 26.04 crores (Q1 2008-09: Rs.3%
.5%.3% as compared to the corresponding quarter of the previous year.514 crores
. The interest cost (net) at Rs. there was an exceptional notional foreign exchange valuation loss of Rs. The company’s continued focus on cost efficiencies.5%.6928. Sardha
Tata Motors today reported revenues (net
of excise) of Rs.216 units.09 crores) and Profit after Tax was Rs. whilst the exports at 5220 vehicles continued to be severely impacted (negative 43%) in the wake of continuing tumultuous global environment resulting in total sales volume at 127.4% over the corresponding quarter of the previous year. coupled with reduction of raw material prices.548.728.229.253. Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives.161.com
Improvement in liquidity.120 vehicles recorded a marginal decrease of 1. The company’s domestic sales volume at 122. The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 12.9% as compared to the corresponding period of the previous year.76 crores (Q1 2008-09: Rs.63 crores on a standalone basis for the quarter ended June 30.340 vehicles. yielded considerable benefits resulting in the operating margin to 11.7% reflecting the increased investments in new products and supporting capabilities.R. S. and for the period being at 11.4% during the quarter compared with 61% in the corresponding quarter of previous year on the back of a marginal 1.1% in the previous year). 2009. an increase of 57. a decline of 4.
ARUN GULERIA firstname.lastname@example.org%.45 crores for the quarter increased by 125.6404.00 crores. a decline of 7.8% to Rs. the company has a joint market share of 12. For the quarter ended June 30. The heavy truck segment is recovering. with operating profits at Rs.6% due to increased debt taken by the company during the previous year to support its product programmes. Tata passenger vehicles declined by 10% in the domestic market to 45. Profit before Tax for the quarter grew by 58.54 crores (previous year loss of Rs.11 crores).6405 Crores.1% growth in domestic sales to 72. Along with Fiat. inventory reduction and improvement in sales realisation. The company gained market share in commercial vehicles to 67. an increase of 47. increased reach across the country and introduction of new products and variants improved the company’s sales.
An all-new Starbus range of buses has also been introduced. Speaking on the occasion.Rojar R.
ARUN GULERIA arun_guleria@ymail. “I hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern. Concorde Motors. has been introduced in the Ace mini truck.”
Along with Mr. Mr.
The company continues to upgrade its resources to leverage emerging opportunities. comprising multi-axle trucks. developed in-house. also received their cars today. following the car’s launch in March 2009. two other customers. contemporary. In commercial vehicles. the company has completed the process of allotment of Tata Nanos. Tata said. A new mileage enhancing automatic stop-start technology. the Tata Nano LX (Lunar Silver). tippers.
. Vichare. tractor-trailers.in
industry. Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM. are enclosed. Vichare received his choice. today. Dispatches to dealerships have begun from the Pantnagar plant. 2009. Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano. In passenger vehicles. The audited stand-alone financial results for the quarter ended June 30. The consolidated financial results for the 1st quarter of Financial Year would be voluntarily disclosed separately in due course. Ratan N. at the hands of the Chairman of Tata Sons and Tata Motors. As planned. mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time. in accordance with schedules informed to customers. Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country. at the company’s dealership. Karm
Tata Motors is pleased to announce that
car. Mr. the company unveiled its new range of world standard trucks in May 2009. 2009
TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI
. Tata. Deliveries to the allottees have since begun. Ashish Balakrishnan (Tata Nano LX – Sunshine Yellow) and Kores India Limited (Tata Nano LX – Lunar Silver). Along with the Fiat Linea. the company has commenced the distribution of the Fiat Grande Punto in June 2009. Fiat 500 and the Palio. Mr.
Released on: 17th July. where the car is being produced. The company also opened the first Jaguar Land Rover showroom in India at Mumbai. Mr.
and an increase of 17. Cumulative sales (including exports) for the company for the quarter at 123.256 nos. a growth of 27% over last year. while M&HCV sales stood at 9. (51. a decline of 26% over last year. (17.056 nos. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50.210 nos.. Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72.495 nos. LCV sales were 16. The Sumo/Safari range accounted for sales of 3.039 Tata + 2.550 nos. reported a growth of 12%.com
total sale and distribution offtake of 19. a growth of 1% over last year. Cumulative sales of the Indica range at 28..563 nos..094 Tata + 1. (45.a growth of 19% over June 2008. (15.017 Tata + 550 Fiat) in June 2008.399 vehicles. a 2% decline compared to 26. a 32% decline over the same period last year.
... declined by 7%. (17.733 nos. The company’s domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43. Cumulative sales of the Indigo family were 8. Lata Sure
Motors’ total sales (including exports) of Tata commercial and passenger vehicles were 45.837 Tata + 4. sold in June last year. The Indigo family recorded sales of 3. a decline of 11% compared to June 2008.626 nos... sold last year. Exports The Company’s sales from exports at 2. while LCV sales for the quarter were 45.307 nos.431 vehicles in June 2008. an 11% increase compared to 17. -. a decline of 23% over June 2008 but an increase of 15% over May 2009.4% over 2.797 vehicles sold in June last year.388 Tata + 1. compared to 131.8% over 16.849 nos.474 Fiat) in the domestic market in June 2009.244 nos.7% over 2. against 52.205 nos.175 Fiat) of May 2009.513 nos. of May 2009.832 nos. 2009
TATA Motors’s June 2009 DOMESTIC SALES at 43. but a growth of 29. Passenger Vehicles The passenger vehicle business reported a
ARUN GULERIA arun_guleria@ymail. but a growth of 24. Cumulative sales of the Sumo/Safari range were 8.113 nos.430 nos.522 nos.567 nos.814 nos.245 vehicles sold in June last year. a 1% decline over 43.065 nos.923 nos.244 nos. a 26% decline over June 2008.. a decline of 4% over 47.. The Indica range grew for the fifth consecutive month at sales of 10.155 vehicles in June 2009 declined by 37% compared to 3.854 Fiat).401 Fiat) in the same period last year.. of May 2009.949 nos. Commercial Vehicles The Company’s sales of commercial vehicles in June 2009 in the domestic market were 26. a decline of 35%. a growth of 17% over June 2008... The company launched the Jaguar and Land Rover range in the last week of June in Mumbai..Released on: 1st July.691 nos. Cumulative M&HCV sales stood at 26.
a country with increasing affluence and an economy which is still growing.in). including specifications. 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." Mr.com
. It is an exciting time to be entering the Indian market. It aims to establish a benchmark experience in luxury car sales in India. Chairman of Tata Sons and Tata Motors. will offer a wide range of both Jaguar and Land Rover vehicles. combining refined luxury with a true breadth of capability. Jaguar has become one of the world's leading producers of beautiful fast cars.220 nos.in) and Land Rover India website (www.jaguar. 2009
FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA
Jaguar 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. The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF. Jaguar and Land Rover's award-winning vehicles are well known around the world. XFR and XKR and Land Rover Discovery 3. with a dedicated showroom section for each brand.The cumulative sales from exports for the
fiscal at 5. in the same period last year. Tata. are available on the new Jaguar India website (www. Mumbai. Mr.landrover. Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli.
Released on: 28th June. with plans to develop the dealer network throughout 2009 and 2010. Ratan N. declined by 43% over 9. Land Rover produces the world’s most versatile all-terrain vehicles. Tata. said: "Jaguar Land Rover is delighted to have officially opened our first showroom in India. accompanied by a parts and service network. CEO of Jaguar Land Rover. Ratan N. We hope that they will delight customers in India just as they have done in markets the world over. We believe
ARUN GULERIA arun_guleria@ymail. David Smith.159 nos. Further details. Range Rover Sport and Range Rover. Chairman of Tata Sons and Tata Motors.
Microcontrollers are used in every device in the car. With fuel prices touching nearly $150 per barrel. as opposed to the gasand-oxygen explosions of internalcombustion models. and we hope to tap the demand for premium vehicles from discerning customers. Due to the absence of combustion and. There are no keys . the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours. Tata motors also plans to launch the world's cheapest car."
Released on: July 7. 3. the car will be ready to go another 200-300 kilometers. compressed air to be specific.50. According to the designers. it is about time we heard some breakthrough! India's largest automaker Tata Motors is set to start producing the world's first commercial air-powered vehicle. and at a cost of approximately 100 rupees.000Km. In two or three minutes. 85 ($ 2).that the Indian market holds significant growth potential in the long term. The car has a top speed of 105 kmph. with a tubular chassis that is glued not welded and a body of fiberglass powered by compressed air. uses compressed air. consequently.] The temperature of the clean air expelled by the
. Tata Nano priced famously at One lakh rupees(£1200) by October. Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving). to push its engine's pistons. indicators etc. then the world's cheapest car and now it is also set to introduce the car that runs on air. The cost of a refill would be about Rs. once the market develops.just an access card which can be read by the car from your pocket. First the Landrover-Jaguar deal. a factor which makes a perfect choice in cities where the 80% of motorists drive at less than 60Km. of residues.com
The MiniCAT which is a simple. The Air Car.
ARUN GULERIA arun_guleria@ymail. As a viable alternative. developed by ex-Formula One engineer Guy Nègre for Luxembourg-based MDI. The Air Car. 2009
TATA MOTORS TO INTRODUCE AIR CAR
– Ben MaGreow
Motors is taking giant strides and making history for itself. called the MiniCAT could cost around Rs. it costs less than 50 rupees per 100Km (about a tenth that of a petrol car).000 ($ 8177) in India and would have a range of around 300 km between refuels. light urban car. changing the oil (1 litre of vegetable oil) is necessary only every 50. Refilling the car will. take place at adapted petrol stations to administer compressed air. so one tiny radio transmitter sends instructions to the lights. Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009.
56. 2505. The company has actively responded to this changed situation by taking a number of urgent and long term measures. 2009. including Jaguar Land Rover. Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan.25 crores
Tata Motors today reported consolidated
gross revenue of Rs.25 crores. Land Rover sales fell considerably. In 2008 therefore. However. TDCV: While market illiquidity and high interest rates in South Korea impacted the company’s domestic performance.79 crores. aligning production with demand and tight control over cash flows.26 crores.exhaust pipe is between 0-15 degrees below zero. the consolidated gross revenue was Rs.85 crores.07 crores).70 crores. 35660.88) (200708: Profit of Rs. the company has introduced successfully new variants on both Jaguar and Land Rover brands. However. In addition.79 crores. On a consolidated basis. 2009
Consolidated Revenue in 2008-09 Rs. and Profit after Tax for the year was Rs.24) for its consolidated operations. 2505.40340. These include cutting costs drastically and working on a plan of substantial cost reduction. Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs.74151. which makes it suitable for use by the
internal air conditioning system with no need for gases or loss of power.(56. Tata Motors has already reported on May 29. that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs. impacted the auto industry worldwide. the company had reported a Profit after Tax of Rs. it
ARUN GULERIA email@example.com
. the global meltdown.
Released on: 26th June.1001.70938.85 Crores (2007-08: Rs. The consolidated revenues (net of excise) in 2008-09 amounted to Rs. in 2007-08. In 2007-08.25660. the company reported a Loss after Tax in 2008-09 of Rs. Business Highlights:
Jaguar Land Rover: Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008. 70938. 2167.21 crores in 2008-09. and is to unveil the all new XJ sedan shortly. especially after July 2008 with vehicle financing and demands drying up. The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008. Loss after Tax Rs.
TMFL: In line with Tata Motors’ sales in 2008-09.strongly grew exports. it has developed appropriate business structures and processes to strengthen relationship with strategic clients.
ARUN GULERIA arun_guleria@ymail. Telcon: The company has launched several new products. 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. there was a decline in disbursals. It expects demand revival supported by infrastructure spend in the country. Tata Technologies: The company has consolidated position among the top three solutions and software
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. as also product development initiatives.com
. 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. and has expanded presence in aerospace design and aero structures. the two companies significantly reduced variable costs to counter the slowdown. The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments.
373 units (2007-08: 312.Released on: 29th May.com
Ace and the Tata Magic. a decline of 10. The company accelerated cost reduction measures and proactively managed working capital to contain the impact as best as it could.26 crores. particularly in the October-December quarter post the global financial market upheavals.28739. and Net Profit lower at Rs.2%). The total 2008-09 sales volume (including exports) is 506.33093.421 units. compared to 585.27 crores (200708: Rs.1001.1001. have continued to improve penetration. as in the automobile industry.79 crores compared to Rs. The company increased market share in commercial vehicles to 63.2028.92 crores. Domestic
. a decline of 60.47 crores in 2007-08. aided by its wide product offering.649 units in the previous year.7%.1013.935 units). Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales.2576.26 crores compared to Rs.93 crores) in 2008-09. The company retained its domestic leadership position in commercial vehicles. Domestic commercial vehicles sales amounted to 265. a decline of 50.7%. Small commercial vehicles.79 crores. The demand contraction was triggered by high interest rates and unavailability of finance throughout the year. 25660. The Profit before Tax was Rs.8% (2007-08: 62. a year marked by severe demand contraction in the automobile industry. abetted by reduction in freight movement in different segments and customer concerns on economic conditions. 2009
Tata Motors Net Revenue in 2008-09 lower at Rs.28599. Revenues (net of excise) for the year were Rs.76 crores compared to Rs. but growth is yet to revive to earlier levels.25660.41 crores in 2007-08. due to market upheaval
Tata Motors today reported gross revenue
(stand-alone) of Rs. The Profit after Tax for the year was Rs. The impact on heavy commercial vehicles was more severe. like the Tata
ARUN GULERIA arun_guleria@ymail. and continued to be amongst the top three in passenger vehicles.7%. The fall in volumes combined with peak input prices and high interest rates brought margins under pressure.
1% for the year (2007-08: 14%) and a March exit share of 14.659 numbers). The dividend is subject to approval of shareholders.5%. grew at a faster rate and helped enhance market share.Hindustan Times
The growth in the car market has shown
declining results as a result of the inflation. both of which have been received well. and the launch of the Tata Nano on March 23. introduced during the year or the previous year.
.055 units).536 numbers (2007-08: 54. The increase in the price of fuel and the steel has led to a slower growth rate of the car industry in India. Due to inflation it has also been noticed that the sales of car are being motivated by the discount offers that the automobile companies are offering to the buyers.03 lakh fully paid bookings were received for the Tata Nano.
__________________________________________________________ EFFECT OF INFLATION ON CAR MARKET
. DIVIDEND The Board of Directors has recommended a dividend of Rs. The effect on inflation has affected every sector which is related to car manufacturing and production. offering benefits like higher fuel efficiency.512 units (2007-08: 218. The effect of inflation has taken the rise in the price rate of the cars by 3-4%. the deliveries of which will begin from July 2009. The Audited Financial Results for the financial year ended March 31.The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 13. Some car manufactures have gone to the extent of giving exchange offers to the consumers and some have introduced a competitive finance rates. Hyndai and Honda are trying hard to boost their production and sales of the cars
ARUN GULERIA firstname.lastname@example.org Ordinary share and Rs. The production of Indian cars has been brought to a noticeable halt for inflation. The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea.passenger vehicles sales amounted to 207. while the Sanand plant is rapidly progressing towards completion.10/each for the financial year 2008-09 (200708: Rs. which in turn suffices the need to meet the rise in price of the raw materials to build a car. tax on the dividend will be borne by the Company. 2009.6/. new products.50 per ‘A’ Ordinary share of Rs. are enclosed.com
in a scenario where the stock market is on a slow rise.6.15/. Tata Motors’ exports were 33. It has also been noticed that leading car manufacturer in India like the Tata Motors. Maruti. Over 2.
2008. In commercial vehicles too. 2009.for Ordinary share). The Pantnagar plant began producing the Tata Nano during the year. The landmark events of the year were the acquisition of Jaguar Land Rover on June 2. impacted by the worldwide downturn in the industry.
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.com
. 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. Research and observations have led to the conclusion that in the year 2008.The effect of inflation has affected not only the production and sales of Indian cars but also has significantly affected the car dealer. officials and car financers.
ARUN GULERIA arun_guleria@ymail. 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. the car market and the car industry is expected to witness 8-9% fall.
THEORETICAL RELEVANCE OF TATA MOTORS’S LONG TERM FINANCIAL BEHAVIOR . bankruptcy costs. 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”. (European Journal of Economics) “The pecking order theory is based on the idea of asymmetric information between managers and investors. 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. 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
. 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”. they are issuing shares. the marginal cost and benefit of debt in determining the best financial structure of a company is considered. at most considerate liability percentage. Sale of Stakes. Therefore. this is what affects the choice between internal and external financing. (European Journal of Economics). the three most important ways of funding. so. According to the above composed data the Tata motors raised funds from NYSE in 2004. and asymmetric information.M&M) Therefore. which can be internal funds or some other less dangerous debt securities. and then from Bombay stock Exchange. (Modigliani-Miller Theorem .Financial Institute
“As per the Trade off theory. in an efficient market then a company’s value becomes solid for finance by its sources. 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 M&M theory 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. To avoid this most of the firms tend to finance their new projects using a security that is not undervalued in the market. Inter-Group Sales and Bridge loans. Private Equity Funds.
. Therefore. Hence.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. 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. 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. this is what affects the choice between internal and external financing”.
The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. besides India.543 crore). Brazil. a UK-based consultancy firm. materials. The major companies in the Group include Tata Steel. of which 61 per cent is from business outside India.5 billion (around Rs251. Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land Rover. Tata Tea. energy. Uruguay and China. Tata Chemicals. Tata Power. The Group’s major companies are beginning to be counted globally. the Group is also gaining international recognition. and a shareholder base of 3. In tandem with the increasing international footprint of its companies. Tata Steel became the sixth largest steel maker in the world after it acquired Corus. UK. services. recently valued the Tata brand at $11. TCS is a leading global software company. consumer products and chemicals. Tata Motors.TATA GROUP
Tata is a rapidly growing business group based in India with significant international operations.4 billion and ranked it 57th amongst the Top 100 brands in the world. Tata Consultancy Services (TCS).2 million. Brand Finance. The business operations of the Tata Group currently encompass seven business sectors: communications and information technology. Indian Hotels and Tata Communications.000 people worldwide. through its UK-based subsidiary Tetley. The Group’s 27 publicly listed enterprises have a combined market capitalization of some $60 billion. among the highest among Indian business houses. Tata Communications is one of the world’s largest wholesale voice carriers. Hungary. engineering. Tata Chemicals is the world’s second largest manufacturer of soda ash. with delivery centres in the US. The Group employs around 350. Revenues in 2007-08 are estimated at $62. Tata Tea is the second largest branded tea company in the world.
Tata companies also extend social welfare activities to communities around their industrial units. recently rated it as the World’s Sixth Most Reputed Firm. for commercial launch by end of 2008. The Nano car is one example. which made India’s first indigenously developed car. medical research. Founded by Jamsetji Tata in 1868. the Tata Nano. the Indica. And the Reputation Institute. which pioneered the international delivery model. Going forward. The combined developmentrelated expenditure of the Trusts and the companies amounts to around 4 per cent of the Group’s net profits. the Tata Group’s pioneering spirit has been showcased by companies like Tata Consultancy Services. the Group is focusing on new technologies and innovation to drive its business in India and internationally. the Tata Group. as is the Eka supercomputer (developed by another Tata company). is held by philanthropic trusts which have created national institutions in science and technology. The Group pioneered several industries of national importance in India: steel. power. Twothirds of the equity of Tata Sons. world scale businesses in select sectors. Anchored in India and wedded to its traditional values and strong ethics. its employees and wider society. The Group aims to build a series of world class.s promoter company.
. the Tata Group’s early years were inspired by the spirit of nationalism. healthcare and livelihoods. The trusts also provide aid and assistance to NGOs in the areas of education. and Tata Motors. USA. in 1998 and recently unveiled the world’s lowest-cost car. hospitality and airlines. which in 2008 is ranked the world’s fourth fastest. the Group is building a multinational business which will achieve growth through excellence and innovation. In more recent times. social studies and the performing arts. The Tata Group has always believed in returning wealth to the society it serves. India’s first software company. while balancing the interests of its shareholders.Businessweek ranked the Group sixth amongst the World’s Most Innovative Companies.
to which the Group brings a unique set of capabilities.CORE VALUES OF TATA
At the Tata Group our purpose is to improve the quality of life of the communities we serve.
. We do this through leadership in sectors of national economic significance.
We must be caring.
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. Our heritage of returning to society what we earn evokes trust among consumers. compassion and humanity for our colleagues and customers around the world. 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. These values continue to direct the Group’s growth and businesses. This heritage is being continuously enriched by the formalization of the high standards of behavior expected from employees and companies. The Tata name is a unique asset representing leadership with trust. and always work for benefit of the communities we serve. shareholders and the community. with honesty and transparency. This requires us to grow aggressively in focused areas of business.
FIVE CORE VALUES
The Tata Group has always sought to be a value-driven organization. The five core Tata values underpinning the way we do business are:
We must conduct our business fairly. show respect.
We must continue to be responsible. communities and environments in which we work.
that over. always ensuring what comes from the people goes back to the people many times
. understanding and mutual cooperation.Unity:
We must work cohesively with our colleagues across the Group and with our customers and partners around the world. building strong relationships tolerance. sensitive to the countries.
Technical Stampings Automotive. Engineering Services Tata Projects. Jamshedpur Utility and Service Company Limited (JUSCO). TACO Supply Chain Management. Tata Blue Scope Steel. Lanka Special Steel. Nita Company. Telco construction Equipment. TACO MobiApps Telemaics. The Indian Steel and Wire Products. Tata Motors: Subsidiaries /Associates/ Joint Ventures: Concorde Motors. Jamshedpur Injection Powder (Jamipol). Tata Auto Comp GY Batteries.
The Seven Business Sectors are:
• Tata Auto comp systems: Subsidiaries/Associates/Joint Ventures: International Automotive. TACO Engineering. HV Axels. Tata Cummins. NatSteel. Tata Metallic. Tata Johnson Controls Automotive.
. Voltas Engineering Products TAL Manufacturing Solutions. TC Springs. Tata steel (Thailand). The Dhamra Port Company. Tata Engineering Services. Tata Sponge Iron. HV Transmissions. Sila Eastern Company. This section lists all these companies under the sectors in which they operate. TAL Manufacturing Solutions. TACO Tooling. Tata Pigments. TACO Visteon Engineering Center. Tata Precision Industries. Tata Refractories. Tata Toyo Radiator. TACO Hendrickson Suspension Systems. Tata Yazaki Auto Comp. TRF. Tata Steel KZN. Tayo Rolls. besides the two promoter companies of the Group. Tata Technologies. TACO Interiors and Plastics Division.TATA Group Companies
The TATA family of enterprises comprises 98 companies in seven business sectors. TCE Consulting Engineers. Knorr Bremse Systems for commercial Vehicles. Tm International Logistics. Tata Ficosa Automotive Systems. The Tinplate Company of India. Telco Construction Equipment Company. TACO Faurecia Design Centre. Tata Daewoo Commercial Vehicles Company. Mjunction Serves. Tata Ryerson. TRF
• TATA STEEL Subsidiaries /Associates/ Joint Ventures: Hooghly Met Coke and Power Company. Taco Kunstofftechnik.
Tata Financial Services. Tata Asset Management. Tata Capital.ENERGY:
• POWER • Tata BP Solar India • Tata Power Subsidiaries /Associates/ Joint Ventures: Tata Ceramics. Tata Investment Corporation OTHER SERVICES • Tata Quality Management Services. Tata Power Trading. Roots Corporation (Ginger Hotels) THDC • Tata Realty and Infrastructure FINANCIAL SERVICES • Tata AIG General Insurance. Tata Services. North Delhi Power Limited OIL AND GAS • Tata Petrodyne
• • • • Rallis India Tata Pigments Tata Pigments
PHARMA • Advinus Therapeutics
• HOTELS AND REALTY • Indian Hotels (Taj Group) Subsidiaries /Associates/ Joint Ventures: Taj Air. Tata AIG Life Insurance. Tata Strategic Management Group
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. Tata Tetley. Aviation Software Development Consultancy. CMC Americas Inc. Conscripti.CONSUMER PRODUCTS:
• • • • • • Infiniti Retail Tata Tea Subsidiaries /Associates/ Joint Ventures: Tata Coffee. Tata Elxsi SerWizSol Tata Interactive Systems Tata Technologies
• • • •
• • • • Tata Sky Tata Teleservices Subsidiaries /Associates/ Joint Ventures: Tata Teleservices (Maharashtra) Tata Communication Tata Net
INDUSTRIAL AUTOMATION • Nelco Subsidiaries /Associates/ Joint Ventures: Tatanet
. Airline Financial Support Services. WTI Advance Technology. CMC. Tata America International Corporation. HOTV.
for every such 6 shares held at a face value of 305 would raise Rs. earlier in July it sold 24% stake in an Auto component unit to a group firm and booked a profit of Rs. 320 billion wealth and was one of the top 10 wealth creators in India. 340 every six shares expecting to net Rs. helping it to raise further funds for this acquisition.960 Crores.90 Crores. 731 Million in 2003. Tata motors finance. With manufacturing facilities in the towns of Jamshedpur. Tata motor’s passenger cars still need to reach acceptable international requirements.3 Billion $ (Rs. now Mumbai. and Pune. The financial business of Tata motors was separated into a subsidiary company in sep. 110 crores. It is also in talks with private equity funds to offload 25% of stake in each of the following 6 unlisted group units. 95. 486 crores to Tata Sons. 1. 150 crores. the holding company of whole Tata group firms. India. listed on the New York Stock Exchange in 2004 has created Rs. From year 2003-2007. 2. to attain Rs. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. where it recorded a strong financial performance during the last 5 year period. They are offering one ordinary share valued at Rs. By floating two rights issues at the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4. they are Tata Daewoo commercial vehicle company. has its headquarters in Bombay. was formerly called TELCO (TATA Engineering and Locomotive Company).189 Crores) Borrowed for Acquisition of jaguar and Land Rover from their principle “The Ford Motor Company’s”.
. Lucknow. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India. the sales of the stakes would possible conclude by June 2009. 10. it also sold 10 million shares or 1.4%. these proceed would be utilized for an early repayment of the short term funding of 2.36% of Tata steel for RS. Established in 1945. Tata technologies and TELCO construction equipment. HV transmissions. the so called “A” share would have different voting and dividend rights. 525 million in 2007 from Rs. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group.TATA MOTORS LIMITED
The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited. the profits of the company went up at a CAGR of 36. 2006. 331.
The Analysts say that." 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.86 points. even though the bench mark index gained 3.8% to end at 15."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. 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.85 on BSE. 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.82% to Rs. 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 28th may its share value has fallen more than 30% and fell by 1.
According to the Hub & Spoke model. The domestic CV market grew at a CAGR of 26. The demand for LCVs in the <=3.2 to 25 tonnes segment is booming at the cost of demand in 12 to 16. This structural shift in demand dynamics is due to the evolution of Hub & Spoke model of distribution.2 tonnes segment is suffering.
.5 tonner vehicles. strong ancillary network coupled with Government’s support by way of concessional excise duty of 16% for small cars. the CV segment registered a growth of 32.2 tonnes is witnessing a surge while demand for semi-trailers in 26. However.4 to 35.7% during the last 6 years. The CV industry is directly related to the economic growth and development. Though the rule is not being followed strictly at present.2 tonnes segment. 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 FY07. With the Indian economy expected to grow at 8. 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. in future if this rule is implemented strictly it will result in huge replacement demand. Demand for trailers of >35. while MCVs are used in distributing goods to different cities and the last leg of distribution in intra city is done by using <=3.5 to 12 tonnes segment and 16.2% due to Supreme Court’s ban on over loading trucks.5 tonnes category. we believe that this is a one-time demand and the CV segment may not witness such kind of growth repeatedly. HCVs plying over the highways to transport goods to different states and districts. 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.5 tonnes segment is rising at the cost of demand in 5 to 7. The CV industry witnessed a change in demand dynamics in last few years. high skilled labour.5% to 9% in coming years. while demand in 7. There is a regulation that restricts the movement of vehicles above certain age (15 years in National Capital Region and 8 years in Mumbai).INDUSTRY OUTLOOK
The Indian Automobile Industry enjoys the advantage of low cost base. ban on overloading and also significant investments proposed for removing infrastructure bottlenecks.
The first generation Tata Indica After years of dominating the commercial vehicle market in India.History of TATA Motors
1. founded by Jamshedji Nussarwanji Tata and J. Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra.
Tata Motors is a part of the Tata and Sons Group.
Tata Motors launches its first truck in collaboration with Mercedes-Benz. After the
. a multi utility vehicle. 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 Germany. Baker. 2.
powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A badge engineered version of the car was sold in the United Kingdom as the Rover CityRover. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy.
With the success of Tata Indica. Tata Estate (1992. Tata launched the Indica in 1998. was a major improvement over the previous version and quickly became a mass-favourite. In 2004. the car's excellent fuel economy. The reasons behind the acquisition were: Company’s global plans to reduce domestic exposure. named Indica V2.launch of three more vehicles. TATA Brads DAEWOO ACQUISITION
Tata Novus is one of the best selling commercial trucks in South Korea. Tata Motors also successfully exported large quantities of the car to South Africa. A newer version of the car. 1994) and Tata Safari (1998. a stationwagon design based on the earlier 'TataMobile' (1989).The success of Indica in many ways marked the rise of Tata Motors. a light commercial vehicle). Tata Motors aimed to increase its presence worldwide. Though the car was initially panned by auto-analysts. India's first sports utility vehicle). Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in
3. the first fully indigenous passenger car of India. it acquired the Daewoo Commercial Vehicle Company of South Korea. Tata Sumo (LCV.
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. GloBus and StarBus.
. sensing the huge opportunity in the fully built bus segment. Tata Motors became acquired 21% stake in Hispano Carrocera SA. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses namely. To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform.
Hispano Divo at the 2008 FIAA in Madrid
In 2005.the light commercial vehicle (LCV) segment. 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. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. Aragonese bus manufacturing company giving it controlling rights of the company. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors.
Tata Motors has also gained access to 2 design centers and 3 plants in UK.
Land Rover's Range Rover
On 27 March 2008. In addition to the brands. Lanchester. and Rover brand names. The sale was completed on 2 June 2008 Tata has gained the rights to the Daimler. which also includes the Rover. Daimler and Lanchester brand names Tata Motors became a major player in the international automobile market. Tata Motors reached an agreement with Ford to purchase their Jaguar and Land Rover operations for US$2 billion. The key acquisition would be of the intellectual property rights related to the technologies.JAGUAR CARS AND LAND ROVER
After the acquisition of British Jaguar Land Rover (JLR) business.
. a Brazil-based global leader.A.
The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors. in bus body building. Aragonese bus manufacturing company and introduced its highend inter-city buses in the country. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems.. sensing the huge opportunity in the fully built bus segment. and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design.JOINT VENTURES
Tata MarcoPolo released this low-floor bus in India and now it is widely used as public transport
In 2005. lead by Brian Behrle.
Tata Motors has also formed a 51:49 joint venture with Marcopolo S. Tata Motors acquired 21% stake in Hispano Carrocera SA.
In 2005 & 06
Tata Ace was India's first mini truck Tata Ace. within 4 years since its introduction. TML sold the 2. was launched in May 2005. By October 2005. Tata Ace has also been exported to several European. Autoline was producing 300 load bodies per day for Tata Motors. The Ace was built with a load body produced by Autoline Industries. Tata Motors launched several concept models and future designs of existing models. Ace is still one of the number makers for TML.6 percent to 28.
In 2007.00. Tata Motors launched a re-designed version of Tata Xenon TL during Motor
. It also formed joint ventures with various local companies in several countries to assemble Tata cars.537 units due to the rising demand for Ace.000th Ace in August 2008. South American and African countries. 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 country by creating a new market segment termed the small commercial vehicle (SCV) segment. India's first indigenously developed sub-one ton mini-truck. LCV sales of Tata Motors had grown by 36.By 2005. Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport.
Tata Motors is looking to extend its relationship with Fiat and Iveco to other segments like the 'Global Pick-Up' program. The company plans to launch the new pick-up model in India. Europe. The launch of the 'Global Pick-Up' will mark the entry of the company into developed markets like Europe and the United States. A pick-up variant of Tata Sumo was also launched under the program 'Global Pick-Up'. Tata Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-car during the Geneva Auto Show. in which Tata Motors will hold a 70% stake. The company has formed a joint venture with Thailand’s Thonburi Company.
COMPRESSED AIR CAR
Tata OneCAT Motor Development International of Luxembourg has developed the world's first prototype of a compressed air car. Turkey and Saudi Arabia. Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine technology. Southeast Asia. South Africa. named OneCAT. an independent auto assembler.
. The project was initially collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles.Show Bologna which would be assembled in Thailand and Argentina. MDI owner Guy Negre was reported to have "the backing of Tata". but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync with the needs of sophisticated European customers. In 2007.
which specialises in the development of innovative solutions for electric vehicles. Tata Motors European Technical Centre. Tata Motors' UK subsidiary.93 M. Both run on lithium batteries.1 cu ft) trunk. but "the compressed air driving the pistons can be boosted by a fuel burner". It is actually a dual fuel car but it is more efficient than any present Hybrid cars. With full tanks it will run at 100 km/h (62 mph) for 90 kilometers (56 mi) range in urban cycle. The vehicle would be launched in Norway in 2009. OneCAT is a five seat vehicle with a 200-litre (7. which would fill the tanks in 3 minutes. has bought a 50. There are no gasoline costs and no fossil fuel emissions from the vehicle when run in town.It has air tanks that can be filled in 4 hours by plugging the car into a standard electrical plug. without disclosing the price.
. In 2008 MDI planned to also design a gas station compressor. The company has indicated that the electric Indica would be launched locally in India in about 2010.3% holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for US$1. and plans to launch the electric Indica hatchback in Europe next year.
IN 2009 AND ONWARDS Electric vehicles
Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace.
These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. it acquired the Daewoo Commercial Vehicles Company. Tata Motors has expanded its production and assembly operations to several other countries including South Korea. In 2006. Tata Motors acquired a 21% stake in Hispano Carrocera. a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In May. They will debut in South Korea. a business comprising the two iconic British brands that was acquired in 2008. South Korea. Bangladesh. On Tata's journey to make an international foot print. Tata has dealerships in 26 countries across 4 continents. South Africa. a reputed Spanish bus and coach manufacturer. South Korea’s second largest truck maker. it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). In 2004. Indonesia and Eastern Europe. Bhutan. Thailand and Spain. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler. 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. Tata also franchisee/joint venture assembly operations in Kenya. Bangladesh. In 2005. 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. Ukraine. Thailand. while also exporting these products to several international markets. Spain and South Africa. the SAARC countries and the Middle-East by the end of 2009. Tata Motors has operations in the UK. Among them is Jaguar Land Rover. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India. it formed a joint venture with the Brazil-based Marcopolo. Hispano’s presence is being expanded in other markets. Sri Lanka and Nepal and has a growing consumer base in Italy. Russia and Senegal. giving it controlling rights of the company. Lanchester and Rover. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market.
Tata Motors has been aggressively acquiring foreign brands to increase its global presence.
Thus Tata Motors CV will have to face tough competition in near future. Mere car assembling operations were not welcomed. 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 subsidiary in India. which might affect its growth negatively.7 billion by 2010. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. 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. 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.
. The policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. The policies adopted by Government will increase competition in domestic market. motivate many foreign commercial vehicle manufactures to set up shops in India. whom will make India as a production hub and export to nearest market.The Government of India announced an automobile policy in December 1997.
Tata Indica assembled in Thailand and Argentina. Tata Motors revealed its intention to enter the sedan and sports car markets. Thailand. 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 Prima The Luxury Sedan was designed by Pininfrina and has marked the entry of Tata into the international sedan market. South Africa and Argentina and is planning to set up plants in Turkey.
With the unveiling of Tata Elegante during Geneva Motor Show. Indonesia and Eastern Europe.The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and American markets.
state-of-the-art paint shop and R&D facilities.000 units per annum.
M&M has formed a 51:49 JV called Mahindra International with ITEC. with an initial capacity of 24.000 units per annum and at an investment of Rs7bn. Further. tractor trailers and multi-axle vehicles in the 16-32 tonne range at its Pithampur plant. to manufacture commercial vehicles and to bolster its position in the CV business. tippers. Avia’s press shop with dies and tools. 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. Maruti has aggressively launched family cars to undermine the Tata models.
. Ashok Leyland (ALL)
recently acquired the truck unit of Czech Republic-based Avia for US$35m.
Suzuki: Suzuki through its subsidiary. such as long-haul trucks. cargo and specialised load applications and is likely to start producing medium/heavy commercial vehicles from FY09. Maruti Suzuki in the Indian market may also be
Ashok Leyland: Acquisition of Czech Republic-based Avia. Avia manufactures 6-9 tonne LCVs and has a capacity of 20. North American leader in heavy trucks. ITEC is the leader in medium and heavy trucks and buses in North America. and is the world's largest manufacturer of medium-duty diesel engines.
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. Russia.FUTURE CHALLENGES
Mahindra and Mahindra: JV with ITEC. USA (parent Navistar International). while the rest is to be exported to the Middle East. welding lines. The JV plans to sell nearly half of its production in the domestic market. The acquisition has given ALL direct access to an entire range of Avia trucks. Asia and Africa. Mahindra International aims to have a presence across the CV market (6-35 tonnes GVW) with variants of passenger transport. the two companies have formed another JV to manufacture buses in India from end-2007.
1994 1995 1996 1997 1998
• • • • • • •
. 2 millionth vehicles rolled out.
Steam road roller introduced in collaboration with Marshall Sons (UK). Launch of Tata Sumo . West Germany. Indica. First commercial vehicle manufactured in Pune. Tata Sumo deluxe launched. Manufacture of Heavy Commercial Vehicle commences. was established to manufacture locomotives and other engineering products.the multi utility vehicle. Tata Safari . India's first fully indigenous passenger car launched.MILESTONES
Tata Engineering and Locomotive Co. One millionth vehicle rolled out. First hydraulic excavator produced with Hitachi collaboration. Collaboration with Daimler Benz AG. Tata 407.
1959 1977 1983 1985 1986
• • • • •
Research and Development Centre set up at Jamshedpur. Production of first light commercial vehicle. Tata Sierra Turbo launched. indigenously designed. followed by Tata 608.
Launch of the 1st indigenous passenger car Tata Sierra.India's first sports utility vehicle launched. Ltd. The first vehicle rolled out within 6 months of the contract. Mercedes Benz car E220 launched. for manufacture of medium commercial vehicles.
On 29th July. (TDCV) launches the heavy duty truck 'NOVUS' . Tata Engineering signed a product agreement with MG Rover of the UK. Ltd. Tata Engineering becomes Tata Motors Limited. Launch of the Tata Sumo'+' Series Launch of the Tata Indigo.00. R. First CityRover rolled out
Tata Motors and Daewoo Commercial Vehicle Co. J. in Korea Sumo Victa launched Indigo Marina launched Tata Motors lists on the NYSE Tata Motors rolls out the 500.000th Indica rolled out. sign investment agreement and completes acquisition of Daewoo Commercial Vehicle Company Tata Daewoo Commercial Vehicle Co.000th Passenger Car from its Car Plant Facility in Pune The Tata Xover unveiled at the 75th Geneva Motor Show Branded buses and coaches . 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
• • • •
2.2nd generation Indica. Ltd.launched Tata Ace. 3 millionth vehicle produced.000th Indica wheeled out. 100. D.Starbus and Globus . One millionth passenger car produced and sold Inauguration of new factory at Jamshedpur for Novus Launch of Tata Novus
• • •
• • • • • • • •
. Tata's birth anniversary.2001
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Indica V2 launched .
world’s first sub four-metre sedan. assemble and market pickup trucks. Launch of Magic.
• • •
• • •
Roll out of 100. safe. launched. which combines the looks of an SUV
• • •
• • •
. begins on January 21 New 2007 Indica V2 range is launched Tata Motors and Thonburi Automotive Assembly Plant Co.the Indica V2 DICOR.2 L Direct Injection Common Rail (DICOR) engine. Indigo CS (Compact Sedan). (Thonburi). powered by a new 2. Latest common rail diesel offering. the Sumo Spacio Tata Motors launches Indica V2 Turbo with dual airbags and ABS Launch of new Safari DICOR 2. developed on the Ace platform Launch of Winger.000th Ace Tata-Fiat plant at Ranjangaon inaugurated Launch of a new Upgraded range of its entry level utility vehicle offering. Launch of the new Sumo -. India’s only maxi-van Fiat Group and Tata Motors announce establishment of Joint Venture in India Launch of the Sumo Victa Turbo DI. (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. four-wheeler public transportation mode. West Bengal.Sumo Grande. by Tata Daewoo Commercial Vehicle Co. launched. a comfortable. the Tata Spacio.•
Launch of Novus range of medium trucks in Korea. the new upgraded range of its entry-level utility vehicle. Rollout of the one millionth passenger car off the Indica platform. announce formation of a joint venture company in Thailand to manufacture.2 VTT range.
Tata Motors introduces new Super Milo range of buses. Xenon.R. Indica Vista – the second generation Indica. Nano. launched in Thailand. Congo. at the ninth Auto Expo. Tata Motors completes acquisition of Jaguar Land Rover. Tata Nano is launched. Tata Motors signs definitive agreement with Ford Motor Company to purchase Jaguar and Land Rover. Tata Motors launches passenger cars and the new pick-up in D. is launched. 1-tonne pick-up truck. Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III Commonwealth Youth Games Pune 2008.
• • •
• • •
Tata Motors unveils its People's Car.with the comforts of a family car.
Nusli N Wadia Mr. H. V. P. S. Tambe Mr. Krishnan Mr. S. J. Ratan N Tata (Chaiman)
Mr. J. Irani Mr. M Telang Mr. R. Soonawala Dr. S. B. M Palia Dr. A. Gurv Dr. Rajive Dube Mr.J. C Ramkrishnan Mr. N.MANAGEMENT
Board of Directors: Mr.Accounts and Taxation) Vice President (Human Resource) Vice President (Technical Services) Head (Car Plant) Head (Jamshedpur Plant) Vice President (Commercial-PCBU) Vice President (Sales & Marketing) Company Secretary
Mr. Ravi Pisharody Mr. Mehta Mr. M. K. A.R. Borwankar : Mr. Telang
Mr. Sethna : : :
. Ravi Kant Mr.Y. S. Mashelkar Mr. Zackria Sait Mr. P. P. M Mankad : : : : : : : : Executive Director Executive Director President (Passenger Cars) Chief Financial Officer Vice President (Corporate Finance. A. Ravi Kant Mr.
PCBU bags Handa Golden Key Award…. ‘NDTV Profit’ Business Leadership Award. Executive Director. Tata Motors Jamshedpur & Lucknow win awards…
. Tata Motors wins the first CSIR Diamond Jubilee Technology Award.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 wins ‘Golden Peacock Award’ for Corporate Social Responsibility. CVBU. Aggregates Business. 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 chosen as India’s Most Trusted Brand in Cars… Business Today selects Mr. Tata Motors – Jamshedpur wins ‘Energy Efficient Unit Award’. bags ’Best Supplier Award’ from ECEL. ‘CFO of the Year Award 2004’ awarded to Mr. Tata Motors was awarded four prestigious honors. P. Tata Motors receives Uptime Champion Award 2007. Praveen P Kadle. at the ‘CNBC TV18-Auto Car’.
Products of TATA Motors
 Passenger cars and utility vehicles
TATA SUMO GRANDE
• • • • • • • • • •
Tata Sierra Tata Estate Tata Sumo/ Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT Tata Xover
 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
 Commercial vehicles
TATA 1616 STARBUS
TATA MARCOPOLO BUSES
• • •
Tata Ace Tata TL/ Telcoline /207 DI Pickup Truck Tata 407 Ex and Ex2
• • • • • • • • • • • • • • •
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)
 Military vehicles
• • • • • • • • • Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 4x4, 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
Chairman of the Tata Group and Tata Motors. Maruthi 800’s got 3 Cylinders Power 33BHP. Tata Group is expected to massmanufacture the Nano. It’s a sweet looking small car. The car is expected to boost the Indian economy. create entrepreneurial-opportunities across India. particularly the electric-version.000 a year.
Following TATA Nano car specs in comparison with Maruti 800:
• • • • • • • •
Overall Length of Nano is 3100 MM which is 7% shorter than Maruti 800 Overall Breadth of Nano is 1500MM which is 4% Wider than Maruti 800 Overall Height of Nano is 1600MM which is 14% Taller than Maruti 800 Overall inside Space of Nano is 21% Bigger than Maruti 800 Engine Capacity 623CC 2 Cylinders. less than Maruthi 800 Top Speed: 120 Kmph Top Speed Lower Than Maruti 800 Fuel efficiency is 20 Kmpl just as Maruti 800 TATA Nano will hit the roads and as it is a definite threat to Maruti 800.
The introduction of the Nano received media attention due to its targeted low price. The car was envisioned by Ratan Tata. After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now. besides selling them in India. and. as well as expand the Indian car market by 65%. 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. TATA stated that
the initial production of this car will be of 250.MARKETING STRATEGIES
1. just enough to take four people around the city. who has described it as an eco-friendly "people's car".
. 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). to also export them worldwide.
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”.
Tata Motors has promised that it would definitely release Nano's eco-friendly models alongside the gasolinemodel. The company will bank on existing dealer network for Nano initially.000 people are killed in road-accidents every year). West Bengal.000 for Singur. Currently. compared to 300. The new Nano Plant could have a capacity of 500. and have also criticised the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). but increasingly violent protests forced Tata to pull out October 2008.
.000 units.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. The Nano was originally to have been manufactured at a new factory in Singur. However.
2008.000 bookings for the car. The Nano's development has been tempered by the company's success in producing the low cost 4 wheeled Ace truck in May 2005. achieving around 26." To achieve its design goals. four-passenger city car built by Tata Motors.00km/l in the city. aimed primarily at the Indian market. The sales of the car begin in July 2009. the Chairman of Tata Motors. such as
. The car was designed at Italy's Institute of Development in Automotive Engineering — with Ratan Tata requesting certain changes. with a starting price of Rs 115. The Times of India reported the vehicle is "a properly designed and built car". generating more than 200. This is cheaper than the Maruti 800. Nano had a commercial launch on March 23.000 (rupees). inspired by the number of Indian families with two-wheeled rather than fourwheeled vehicles. 2009 and a booking period from April 9 to April 25. It was first presented at the 9th annual Auto Expo on January 10. began development of the world's cheapest production car in 2003.00km/l on the highway and around 22. Tata refined the manufacturing process. "It is not a car with plastic curtains or no roof — it's a real car. Contrary to speculation that the car might be a simple four-wheeled auto rickshaw.641Rupees. The car is very fuel efficient. The Chairman is reported to have said.The Tata Nano is a rear-engined. its main competitor and next cheapest Indian car priced at 184.
Ratan Tata. emphasized innovation and sought new design approaches from suppliers. at Pragati Maidan in New Delhi.
the rear seats can be folded down to access the trunk space.
• • • • •
Tata initially targeted the vehicle as "the least expensive production car in the world"— aiming for a starting price of 100. It only has one side view mirror. As of August 2009.000 rupees or approximately. It has three nuts on the wheels instead of the customary four. The Cx and Lx versions each have air conditioning. Its door opening lever was simplified. Instead. It has no power steering. power windows.000 units per year. such as Fuel Injection. ABS and other technologies. the Cx. material costs had risen from 19% to 29% over the car’s development. Some components of the Nano are made in Germany by Bosch. and Tata faced the choice of:
introducing the car with an artificially low price through government subsidies and taxbreaks 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 metalbody
. Tata has set its initial production target at 250. due to its tall stance) and an 8% smaller exterior compared to its closest rival. Value Motronic ECU. brake system.
COST CUTTING FEATURES
The Nano's trunk does not open. The Nano has 21% more interior space (albeit mostly as headroom. and central locking. Tata offered the car in three versions: the basic Tata Nano Std. It has a single windscreen wiper instead of the usual pair. and the Lx.the elimination of one of two windscreen wipers. the Maruti 800. despite rapidly rising material prices at the time.
73. while the deluxe and luxury models will get air conditioning and body coloured bumpers. The deluxe Tata Nano CX at 151. 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. including Reuters due to "the way it has tweaked existing technologies to target an as-yet untapped segment of the market". Girish Wagh has been credited with being one of the brains behind Nano's design. European version of the Tata Nano has all of the above plus a larger body.1 mpg (US). power windows and central locking The Nano Europa.974 km/L. He said most relate to rather mundane items such as the two-cylinder engine’s balance shaft.000 Rupees has no extras. and has a fuel economy of 4. Ratan Tata pointed out none of these is revolutionary or represents earth-shaking technology. and 3. the Nano is a 33 PS (33 hp/24 kW) car with a 623 cc rear engine and rear wheel drive.3 mpg (UK)). yet it has been stated by the same sources that Nano is not quite "revolutionary in its technology".97 km/L. which will be adjustable. anti-lock braking system (ABS) and meets European crash standards and emission norms. Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano. 62 mpg (UK)) under city road conditions. technologies which are expected of the new and yet-to-be-released car
.000 Rupees has air conditioning. 51.7 mpg (US). and how the gears were cut in the transmission.•
raising the price of the car
Nano is available in three trim levels:
• • •
The basic Tata Nano Std priced at 123.
According to Tata Group's Chairman Ratan Tata. The luxury Tata Nano LX at 172. Moreover.85 L/100 km on highways ( 25. Though the car has been appreciated by many sources. The project head. 61. bigger 3-cylinder engine.
The base model will have fixed seats. just low in price.55 L/100 km (21. Much has been made of Tata's patents pending for the Nano. Yet during a news conference at the New Delhi Auto Expo.000 Rupees has air conditioning. with powertrain accounting for over half of them.
Tata Nano managed to score around 24 km per litre during its ‘homologation’ tests with ARAI. According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010. This makes Tata Nano the most fuel efficient car in India. 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. Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAI’s tests on its windshield. Tata is also reported to be contemplating offering a compressed air engine as an option. another technically innovative "people's car". and now-defunct. though no official incorporation-date for these technologies in the new car has been released. MG Rover Group later based their Rover CityRover on the Tata Indica. The independent. A concept vehicle similar in styling to the Nano. According to Tata.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.include a revolutionary compressed-air fuel system and an eco-friendly electric-version. Tata Nano passed the required 'homologation’ tests with Pune-based Automotive Research Association of India (ARAI). the Nano complies with Bharat Stage-III and Euro-IV emission standards.
. 'The car has passed the full-frontal crash and the side impact crash'. technologies on which Tata is reportedly already working. Ratan Tata also said.
REAR MOUNTED ENGINE
The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500. The eventual new Mini was much larger and technically conservative.
8 in) Ground clearance: 180 mm (7.9 in) × 73.5:1 bore × stroke: 73. 47 mpg-US))
Body and dimensions: Seat belt: 4 Trunk capacity: 150 L (5.3 cu ft) Suspension.1 in) Front suspension: McPherson strut with lower A arm Rear suspension: Independent coil spring 12-inch wheels
.2 in) Rear track: 1.5 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: 9.325 mm (52.5 mm (2.315 mm (51.9 in) Power: 33 PS (33 hp/24 kW) @ 5500 rpm Torque: 48 N·m (35 ft·lbf) @ 2500 rpm Layout and Transmission: Steering: Performance: 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-imp. Tires & Brakes: Front brake: drum Rear brake: drum Front track: 1.
EX and GX available in 2-seater. All variants. After the facelift. DI GX 7/9 Str. It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle. except the Victa DI variants. is evident across the variants. crystal finish tail lamp cluster. 7. power steering. with some cosmetic changes. Tata's latest three variants under the 'Sumo Grande' category are LX. anti glare
. as it is rugged and affordable. GX 7 Str. The Victa DI variants get a 3-litre turbocharged diesel engine. EX 10/7Str. the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle. A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets. The Sumo has seen a series of changes in terms of refinement in this decade. both internal and external. clear lens multi reflector head lamps.
The new Sumo Victa released in 2004 featured power windows. DI LX 7/9 Str. are powered by a 2litre Inline-4 diesel engine. Refinement. DI EX 7/9 Str. This model comes in 8 and 10 seater variants and is very much popular with private transporters & contract taxi vendors because of its lower cost. The prominent visual difference was the presence of round headlamps instead of the rectangular lamps. but in fact is a carryover of the old Sumo. DI CX 7/9/10 Str. central locking. The Sumo comes in nine Victa variants: CX 10/7 Str.2. Sumo Grande boasts of a powerful 2.2-L Direct Injection Common Rail (DICOR) engine
A no-frills version called the Tata Spacio is also available. Modification in TATA Sumo
The Toyota Qualis and now competes with Chevrolet Tavera. dual AC. and LX 10/7 Str. It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407. In 2007. The Tata Sumo has been enjoying its position in the MUV market since 1994. And in terms of styling. the Spacio inherited the styling elements of the older Tata Sumo. the Victa became available with the Spacio's 3000 cc engine. The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp. GX TC 7 Str. The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo.seater and 8-seater configurations. It has been the favorite choice for cab owners.
It lies below the Tata Safari in Tata's product portfolio. Arctic Silver. LCD monitors. Marine Blue. Sunset Orange.
New TATA Sumo (SUMO GRANDE)
Tata launched the Sumo Grande on January 10.6 s 2. Quartz Black.25 meters 16 inch 235/70 R 16 (tubeless) 205 mm / 8. It is the most up market version of the Sumo available and features completely different body work.07 inches Power Steering. remote keyless entry. Arctic White. multiple trip odometers are all either standard or available options. (7 Colours)
TATA SUMO GRANDE
(More than meets the eye)
. 122 PS) DICOR (Direct Injection Common Rail) engine.
SUMO GRANDE Specifications
Top speed 0 to 100 km/h (62 mph) Engine Type Displacement (Capacity) Transmission Power Torque Valve Mechanism Cylinder Configuration Fuel Type Fuel Tank Capacity (Ltrs. 32 Bit ECU and Variable Geometry Turbocharger 2179 cc 5-speed manual 120 PS (118 hp/88 kW) @ 4000 rpm 250 Nm (184 lb·ft) @1500 rpm DOHC Inline 4 Diesel 65 5. Mineral Red. voice warnings.ORVMS with electronic control. tachometers. Tiltable & Collapsible Zephyr Green.) Minimum Turning Radius Wheel size Tyres Ground Clearance Steering Colours 148 km/h (92 mph) 17.2L DICOR. 2008 powered with a new generation 2200 cc 120 bhp (89 kW.
It has no mounted LCD screens. black dials.INDIGO DICOR
The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver maximum torque of 140Nm @ 1800 . black dials with chrome rings & star check as the new pattern for its console & AC fascia.
Indigo LS Dicor Tata Indigo LS Dicor features manually operated outer rear view mirror.
. 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-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 1.3. & Benz silver as the new pattern for console & AC fascia. NEW VERSION OF INDIGO .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.3000 rpm.
is working on strategies to make inroads into these markets. Power -70 PS @ 4500 rpm Max.140Nm@1800-3000 rpm
4. the difficulties faced in cracking these markets pale before the huge potential they offer a company. the contribution is likely to grow.
TAPPING OF RURAL MARKETS
According to the National Council for Applied Economic Research. Torque . at 1999 prices. Power . 64% of the total expenditure and one-third of the total savings. 56% of the national income. Torque . Noticing this huge potential Tata motors now plans to tap the rural market.12 Kgm @ 3500 rpm Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. or NCAER.13.75 kmpl : 18. Torque .
Petrol Diesel Dicor 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max. So.Mileage (City) Mileage (Highways)
: 14. Power-70 PS@4000 rpm Max. and going ahead. The share of non-farm income will be about two-thirds of the rural economy by 2012-13.85 PS @5500 rpm Max. NCAER data suggests that in real terms. the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08. Tata motors ltd. rural India accounts for 70% of India’s population. 60 per cent of which runs on cash. around 55% come from rural India. Of the total sales (of consumer goods).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.
but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. which put Tata Motors Limited at a disadvantage with competing car manufacturers. Tat has not got a foothold in the luxury car segment in its domestic. and to only transplant a couple of senior managers from India into the new market. and the companies have an agreement to build a pick-up targeted at Central and South America.
The company's passenger car products are based upon 3rd and 4th generation platforms.Tata Motors Limited
SWOT – Strengths. Threat
• 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. • The company has had a successful alliance with Italian mass producer Fiat since 2006.' • The company has a strategy in place for the next stage of its expansion. For example. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. • Despite buying the Jaguar and Land Rover brands (see opportunities below). 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?
. Not only is it focusing upon new products and acquisitions. The benefit is that Tata has been able to exchange expertise. Indian market. Opportunities. Weaknesses. the Fiat Palio Style was launched by Tata in 2007.SWOT Analysis .
Two of the World's luxury car brand have been added to its portfolio of brands.retailing at little more than a motorbike.•
One weakness which is often not recognised is that in English the word 'tat' means rubbish. but they would buy into Fiat. Would the brand sensitive British consumer ever buy into such a brand? Maybe not. and will undoubtedly off the company the chance to market vehicles in the luxury segments.
. eco-friendly engines. South Korea and China will have a thirst for low-cost passenger and commercial vehicles. Whilst the World is getting ready for greener alternatives to gas-guzzlers. • The range of Super Milo fuel efficient buses are powered by super-efficient. These are the 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. 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. • 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.3 million. at a time when the World is looking for environmentally friendly transport alternatives. • Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. is the Nano the answer in terms of concept or brand? Incidentally. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%. 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. Jaguar and Land Rover.
General Motors. Ford and others. Other players developing luxury cars targeted at the Indian market include Ford.
Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. as Tata globalizes and buys into other brands this problem could be alleviated. Maruti Udyog. • Sustainability and environmentalism could mean extra costs for this low-cost producer. The price of steel and aluminium is increasing putting pressure on the costs of production.THREATS
• Other competing car manufacturers have been in the passenger car business for 40. In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra. 50 or more years. it has left itself open to competition from overseas companies for the emerging Indian luxury segments.
Since the company has focused upon the commercial and small vehicle segments. Obviously. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market. This could impact its underpinning competitive advantage. For example ICICI bank and DaimlerChrysler have invested in a new Punebased plant which will build 5000 new Mercedes-Benz per annum.
. Honda and Toyota.
64 354.29 20152.00
.84 113.82 2384.64 13797.31 47.23 32.46 2499.98 10135.59 560.54 5985.92 24611.21 27185.59 130 34.57 28048.56 7715.93 3507.22 3830.56 1877.77 4849.47 2028.21 17447.81 6611.06 1869. Tax) Current Liabilities and Provision (Incl Def.15 16148.87 2053.22 10688.68 1504.94 1016.) EPS (annualised).94 1494.76 177.38 1528.68 8447.39 6606.44 125.31 202.19 37.40 0 226.9 0 264.58 0 1314.69 2573.87 2102.80 26118.52 150 29.11 67.03 17088.28 31611.93 80.75 2714.98 3159.57 10511.77 21.39 3228.48 3654.11 27535.47 2941.16 1923.42 1674.59 14614.79 4111.69 17331.92 20550.88 32.64 14976.) Dividend (annualized %) Payout (%)
Year 2003-04 2004-05 2005-06 2006-07
Dividend Per Share(DPS) in Rs.68 24037.85 671.55 427.38 0 43.66
353 3589.53 455.81 1132.12 1695.23 2844.51 10805.77 547.4 -1477.65 8691.40 972.45 23290.32 2346.92 2681.99 14094.00 36.30 44. 8.93 28488.88 2049.56 3527.26 32885.92 7188.03 28529.81 2574.57 10781.52 7945.
385.33 15165.78 3002.85
382.54 2867.39 51.80 756.22 101.72 7208.00 12.94 8749.30 693.44 50.95 1687.50 13.76 5307.71 1651.79 12753.85 1997.FINANCIAL OVERVIEW
Equity Paid Up Network Capital Employed Gross Block Net Working Capital (Incl Def.74 0 472.88 143.34 1192.18 1913.87 5510.45 581.82 1292.41 6843. (Unit Curr.95 -19.29 17232.54 7813.32 -1248.90 1236.7
385.49 1179.00 15.43 19534.8 10852.34 810. (Unit Curr.41 9638.00 31.10 150.11 1497.6
361.08 2576.94 62.00 38.23 12029. Tax) Total Assets/ Liabilities Gross Sales Net Sales Other Incomes Value of Output Cost of Production Selling Cost PBIDT PBDT PBIT PBT PAT CP Revenue earnings in forex Revenue expenses in forex Capital earnings in forex Capital expenses in forex Book Value (Unit Curr) Market Capitalisation CEPS (annualised).85 12895.44
Current Assets (Incl Def.41 2319.55 23673.95 1068.43 20293.
80 29.31 20.703 2576.08 0 361.6134 1651.84
12.30 19.33 21.31 19.49 2936.66 0.6 0 4111.46 0 385.05 202.77 0 3589.18 0 385.81 2495.22 217.75 0.25 368.87 5154.34 0 353 3236.07 0.96 0 7839.34 96 1196.18 476 2097.52
15 177.41 6484.9 363.48 1259.42
8 101.85 0.79 3749.Payout Ratio) x ROE = (PAT – Preference Dividend) / Equity Shareholder Funds = Equity Share Capital + Reserves – P& L A/C (Dr.68 29.00
FORMULAE AT GLANCE
Cost of Equity.86 29.) Payout (%) Retention Ratio PBT Tax PAT Preference Dividend Equity Reserves P & L Account(Dr Balance) Equity Shareholder Fund ROE Growth Rate (%) Cost of Equity (%) Interest Total Debt
13 143. Ke =
Dividend Per Yield Growth rate (G) ROE Equity Shareholder Funds = Dividend Per Share / Book Value = Retention Ratio x ROE = (1.35 1690.76 293.64 38.654 2053.01 2437.39 0.31 21.18 29.77 0.)
DPS(Rs) Book Value(Rs.22 30.57 31.94 382.7 0.6815 2573.73 28. Balance)
Cost of Debt Kd
(Rs in Cr.5 113.5 0.93 34.26 425.6 0.77
15 202.38 363.61 6280.54 7453.2007-08
15.47 139.6356 1292.34 0 6869.51 4009.44 0.69 36.2 0 5537.14
.82 1288.03 19.
87 8447.19 2941.84
Equity Debt Year
385.51 21.54 30.23 100.07 1494.36
Equity Debt Year
WEIGHTED AVERAGE COST OF CAPITAL
Proporti on (%)
Weighted Cost (%)
.82 4849.26 6.47 101.59
Equity Debt Year
Proporti on (%)
9.99 2346.80 6.71 6606.41 4009.30
Weighted Cost (%)
8.94 27.38 7.14 94.81 28.52 6666.39 11.84 5
Weighted Cost (%)
Weighted Cost (%)
2.87 2936.06 2007
29.54 6280.79 2495.81
Weighted Cost (%)
3.14 4394.34 101.78 3002.61 91.21 2004
Proporti on (%)
14.1 9 8.73 1869.62 12.76 9.84 12.11
9.84 3319.50 87.04 88.20
Equity Debt Year
382.52 27.22 100.69 10852.Cost of Debt (%) PBIT Capital Employed ROI (%) Year
6.42 2857.71 2005
Proporti on (%)
353.05 16.14 12.07
28.55 20.00 1259.02 78.11 106.77 1612.
30 30. Poor credit availability.59 12.30 27.
. Manufacturing expenses.82 Difference 13.19 16. Hardening of interest rate Rise in price of input material Proposed increase in fuel price and volatility in foreign exchange rates.12 15. the second year of 11th Five Year Plan saw a marginal fall in GDP growth rate of 9%. • • • • • • • The slowdown in economy. employee cost increase.WEIGHTED AVERAGE COST OF CAPITAL (WACC) Vs ROI
Year 2008 2007 2006 2005 2004 WACC (%) 8.13
Fiscal 2008-09.69 ROI (%) 21.20 12.18 11.91 15.00 20.78 28.30 10. Increase in inflation.11 27.
Net raw material consumption inclusive of processing charges increased, with pressure on volumes and margins.
BALANCE SHEET ANALYSIS
From the above statement it is seems that the company has become highly geared year after year. To substantiate this, the net current asset which is a representation of their long term debit is on the increase (Rs. 27,203.30 million In 2006, Rs. 40,235.10 million in 2007, and Rs. 58,792.80 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, hence, increasing the total equity year by year. During the year, the Company recorded its highest ever sale of 5, 85,649 vehicles and grew its turnover to Rs. 33,094 crores to remain as India's largest automobile company by revenue. The Company's margins were under pressure during the year due to rising interest rates, constraints in availability of vehicle financing from outside sources and unprecedented increase in prices of raw materials. 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). 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. To support my analysis in financial year 2006, Rs. 36,641 million loans was taken, and in the year 2007, Rs. 79,137 million loan was taken, And also the companies net profit margins have gone down abruptly from 6.8% in 2005 to 5.6% in 2007, most probably because of the rising cost of the raw material used by the 5 company, but still the profits of the Tata Motors remain highest than the other auto manufacturers. The rate of interest on vehicles in India is running very high, because of which the sales growth have gone a little down. Even then Tata Motors have increased there profits to 6.2% year after year. And are still financing most of their sales, up to 31% in 2007 from 24% in 2006.
Hence, gross accounts receivable are greater than before by 35% every year and they also had to make up the shortage of cash by borrowing. When combined with the other expenses to the growth of fuel, it has augmented its short as well as it’s the long-term debt extensively. The EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin at 10.8% was lower than last year as increase in input costs could only be partially absorbed by the market. Note: Amortization = non-cash expense of writing off intangible assets over their useful lives. The Profit Before-Tax at Rs.2, 576 crores was 0.1 % higher than last year, The Profit after Tax at Rs.2, 029 crores, was 6.1 % higher than last year.
With significant increase in the Company's capital expenditure program’s and the growing business requirement, the overall borrowings of the Company stood at Rs.6, 280.52 crores at a Debt: Equity ratio of 0.80:1. 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. 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 8.1% growth this fiscal. The passenger vehicle industry also witnessed a slowdown but managed to grow by 11.1 % by increasing discounts on mature products, launching new models and due to reduction in excise duty announced by the government in Budget during February'08. Vehicle exports also grew, albeit at a slightly lower rate of 11.9% as compared to 14.8% witnessed in the previous year. Amidst moderation in economic growth, a high interest rate regime and tightening of the liquidity position, the domestic passenger vehicle industry was able to grow by 11.3% to an all time high of over 1.5 million vehicles, albeit at a lower growth rate than 21% of the last fiscal. The Industry's growth rate in fact fell to single digit in the last four months of the fiscal. Growth was primarily driven by new launches and discounts on existing volume models. Along with two wheelers, entry level cars (price point below Rs 3 lacs) declined by 2%.The luxury segment
however doubled in size to over 5,000 vehicles and were immune to the slowing market conditions. Of over 90 models in the industry the top 10 constitute 65% of the industry sales. After six years of consecutive growth, the Company's passenger vehicle sales decreased marginally by 4.5% to 2, 18,055 vehicles (including 3,297 Fiat branded vehicles) and the Company had a 14.2% share in the passenger vehicle market between TATA and Fiat branded vehicles. Fiscal 2008-09, 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, increase in inflation, poor credit availability, hardening of interest rates, rise in prices of input materials, proposed increase in fuel prices and volatility in foreign exchange rates, the commercial and passenger vehicle industry has a challenging year ahead, with pressure on volumes and margins.
“Fiscal Total short-term debt (Excluding current portion of long-term debt) Long-term debt net of current portion Total Debt
2006 7,973 27,203 36,641
2007 (Millions of Rupees) 33,145 40,235 79,137”
4% y-o-y growth in net revenue to Rs.2% and 13. 183.8 bn as on 31st March’08.96 bn as on 31st March’08.9% respectively.33 bn as on 30th June’08 against Rs. the interest expense as a % of net sales increased marginally from 1.5. • In a rising cost scenario. The Company’s Net Debt (Net of the surplus investible funds) stood at Rs 89. excluding foreign exchange losses was 7.815.0 mn the year ago quarter.60. Net interest expense increased 37.7 mn. Net of vehicle financing loans and receivables the Company’s capital employed was Rs 178.76 bn as on 31st March’08.304.9% volume growth.1123. 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. The Gross total debt (inc.7% in 1QFY09.FINANCIAL ANALYSIS OF TATA MOTORS
• • • On the back of a 3. • • As on 30th June’08.6% in Q1 FY09. • Tax rate for first quarter declined substantially and stood at 5.0% in 1QFY09.5% as compared to 21. the Company’s net debt to equity ratio stood at 1.
. the balance sheet size of the Company was Rs.98 bn as compared to Rs 150.62 mn shares (Face value Rs.463. 385. 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 72.57 bn during 1QFY09 due to vehicle price increases and favorable mix Significant cost increases were witnessed in raw material consumption and employee cost which witnessed y-o-y growth of 18. 62.7% in 1QFY08. compared to Rs.12:1. EBITDA margin.97 bn as on 30th June’08 as compared to Rs. However. As on 30th June’08.0% 1QFY08.5. compared to 9. compared to Rs. the company registered 14. from 69. Excluding the impact of foreign exchange valuation related losses. • • Cost reduction in 1Q FY09 stood at 294 mn. the Company’s EBITDA stood at Rs. • As on 30th June’08.3 bn as on 30th June’08. FCCNs) stood Rs 94.7% y-o-y to Rs.3% in Q1 FY08 to 1.6 mn due to rising interest rates and higher debt.10) were outstanding on the balance sheet of Tata Motors.135.2% for same period last year.3 mn in Q1 FY09.
94% of the 1% convertible Notes (due 2008) and 97. copper and natural rubber.09 crores registered in the previous year mainly inline with trends in industry and economy. net of excise duties increased by 4. the Company has been able to marginally grow its revenues and profits.349 with increases also in flexible manpower. 082. the Company managed to lower the impact through its on going cost reduction program with initiatives like global sourcing.
.230 from 22.57 crores from Rs. However. nickel.8% to 530. 1. 27.849.27. from Rs.990 units from 526.730.10 crores in FY 2007-08.21. vendor rationalization and value engineering.22% to 54.2.9% to 585. 2008. the margins were under pressure mainly due to the rising input costs and lower volume growth.04 crores in FY 2006-07.
The Company’s Balance Sheet includes Receivables and loans of Rs. 1.
Turnover.280 units in FY 2006-07.368.
Net Raw Material consumption inclusive of processing charges increased by 6. The manpower increased marginally to 23. Whilst the Company's profit after tax improved to Rs.92 crores from Rs.913.03 crores in FY 2006-07.9% during the year to Rs.659 units in FY 2007-08 from 53. Material Cost as a % of net turnover has increased to 73.The total number of vehicles sold during the year increased by 0. 28.
Employee Cost increased by 12. aluminum.2%to Rs. This was largely a result of increase in prices of steel.1.806 units in FY 2006-07.94 bn
FINANCIAL PERFORMANCE AS OPERATIONAL PERFORMANCE:
In a challenging environment. 99. There have been no conversions of the other FCCNs issued by the Company.46crores in the previous year.•
Up to June 30th.4% from 72.3% for the last year.474 units in FY 2006-07.6% to another record high of Rs.19.649 units from 580.028.544.82 crores from Rs.09% of the Zero coupon Convertible Notes (due 2009) have been converted into Ordinary Shares / ADSs. 470. while export volumes increased by 2.The domestic volumes increased by 0.
37 crores in FY 2007-08 from Rs. The Profit Before –Tax at Rs. The Profit after Tax at Rs.5% of net turnover as compared to 2.4.028. Despite increase in interest rates and increase in capital expenditure.4% from 13% in FY 200607.5% of net turnover for the year as compared to 10. 3.
Net interest cost decreased to Rs.4% for FY 2006-07.5% to Rs. the reduction was mainly on account of significant reduction in the Company's vehicle financing portfolio (on account of securitization). 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. 2.557.7% for the previous year.3.79% to Rs.49.00 crores in FY 2006-07.1% higher than last year. was 6.573.18 crores in FY 2006-07.52.2. 2. better working capital management. 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. 913. interest and tax increased by 0.
Depreciation (including product development expenditure) for 2007-08 increased by 6.8% to Rs. 2. 282.46 crores in FY 2006-07.These were 10. 716.671.3.576.
Profit before depreciation. 477. which is subject to a lower tax rate.13% to Rs.07 crores in FY 2006-07.66 crores from Rs.1.011.•
Manufacturing and Other Expenses increased by 2.575.03% to Rs.
Investments increased to Rs. 910.4% to Rs.53 crores in FY 2006-07.47 crores from Rs.940.27 crores in FY 2007-08 from Rs.1% higher than last year.83 crores in FY 200708 from Rs.12%
.64 as compared to Rs. 2. interest earnings and larger capitalization of interest in line with the increase in capital expenditure.The margin decreased to 12.
Profit before Tax (PBT) of the Company increased by 0. It represents 2.92 crores from Rs.2. Profit after Tax (PAT) increased by 6. Basic Earning Per Share (EPS) increased by 5.029 crores.576 crores was 0. 2.313.76 last year.56 crores in FY 2006-07.50 crores from Rs.31 crores in FY 2006-07 on account of increase in fixed assets.
.GLOBAL AUTOMOBILE INDUSTRY
EXPECTED GROWTH by 2015-16
• Expected to grow at 13% p.a over the next decade to reach around USD $ 120 .159 bn by 2016.
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. Hence. including the ‘100. to get an idea of the company’s position (operation and profitability) vis a vis its competitors.
INTER COMPANY ANALYSIS:
Key Players in the Indian auto industry – Passenger Cars And CVs The largest Player in the Indian industry.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. Plans to launch new and exciting products in the Indian markets. Plans to enter the small car segment by re-launching the matiz. is planning to invest heavily to boost exports from India. Has establishes India as one of its manufacturing bases in the world. One of the largest players in the UV/ MUV segment
One of the leading players in the Indian premium cars segment.000’ cars.
TOYOTA has vision of capturing 10% share of Indian passenger car market by 2010. Maruti Suzuki’s JV in India and the largest passenger car manufacturer in India.
The 2nd largest CV manufacturer in India.
One of the leading players in the Indian premium cars segment.
BMW and NISSAN MOTORS.Other global players who are in India have plans for India includes – VOLVO.
. DAIMLER CHRYSLER.
Financial performance in automobile industry.
Scope of the Study:
• • • • • To find the Market position.
Objective of the Study:
• • • To know the consumer satisfaction. This includes the overall research design. the field survey and the analysis of data.
The purpose of methodology is to describe the process involved in research work. Market performance. This study would be useful for companies to know what people perceive and thinking about Tata Motors and its products. Overall opinion about TATA Motors. data collection method. 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. This study would be useful to form strategies. For Economic and the industry environment. This study would be useful to other students as a secondary data.
To find out the satisfaction level of people. Economic and the industry environment.
The secondary 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. I have gone for sample study rather than census study.
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. The research conducted by me is a descriptive research.• • • • • •
Market position. It is blue print that is followed in completing study. Cost saving initiatives. To find out the awareness level of customer. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primary data. 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. Hence.
Sampling plan is determined before data are collected.
STEPS IN SAMPLING PLAN :
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.
The important factors and data’s collected were sequentially analyzed and graphed. It was a randomly area sampling method that attempts to obtain the sample of convenient. 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. It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.
. evaluate and co-operative. the size of sample.Sampling Plan:
A sample design is a definite plan for obtaining a sample from a given population.e.
Total sample size is 100.
It is only for short period of time. Profit & Loss Account and Cash Flow ) and given by respondents. I had done my field work in the following area. JAIL ROAD. CHALCHOWK. REWALSER.
.Limitation of the study:
• • • • • I will have to rely upon the information get from secondary sources (Balance sheet. So I didn’t face any type of difficulty during my project in the process of explaining and taking there responses on the questionnaire. which may not be fully true. SUNDER NAGAR. NER CHOWK. This study will be limited to only some areas of Mandi District of Himachal Pradesh. and ask them to co–operate with me. LUNAPANI. Mostly all the respondent were aware of this type of surveys. PANDO I started my project very first educating the respondents about my entire project. 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.
Comparison of THE STANDING TATA MOTORS visá-vis THE INDUSTRY
the operating cycle provides qualitative information about how quickly the company can convert its stock into cash.á . liquid ratio. which implies that it has comfortable liquidity position. liquid ratio and absolute cash ratio provide information about the company’s ability to payoff the shot-term obligations. which is much higher as compared to the other two. it has a negative operation cycle.TO COMPARE THE STANDING TATA MOTORS vis . the most liquid asset.
The comparison is based on the detailed analysis of the financial statement on the lines of Liquidity.
.e. Company Analysis: • Current Ratio for TATA Motors is greater.vis THE INDUSTRY. • Further. which is primarily due to the high credit period provided to its creditors. 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. It can be in the form of the current ratio. Profitability and efficiency.
Purpose of the Liquidity Ratios: The liquidity ratios help to determine a company’s ability to meet its short-term liabilities. the least. Maruti on the other hand has an operating cycle of 7 days. I CONDUCTED A FINANCIAL ANALYSIS OF TWO OF ITS COMPETITORS – MAHINDRA & MAHINDRA AND MARUTI UDYOG. While the current ratio. absolute ratio or the operating cycles. however as compared to its competitors it is least liquid since inventories form a considerable portion of its current assets and cash i. Solvency.
1.Liquid R tio a a 1.2 1 0.08
o i t a R
Maruti Mahindra TATA
Yea 2008-09 r
.6 0.4 0.2 0
1.LIQUIDITY POSITION GRAPHICAL:
Liquidity R tio .
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. the more the company is burdened by debt expense.
Purpose of the Solvency Ratios: The solvency ratios are used to measure a company’s ability to meet its long term obligation.e the company primarily uses its profits and reserves to find its assets. Maruti on the other hand has a low Debt Equity Ratio only 9% i. TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets are financed through debt. PBIT/Sale: The lower the ratio. therefore conclude that TATA Motors has a favorable liquidity position which is neither too high nor too low. 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.Inferences Drawn: We can. 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. The commonly used ratios to ascertain the solvency position of a company are Debt Equity Ratio and Interest Coverage Ratio. When a
its ICR is much less as compared to its competitors. Consequently its debt obligation is also higher than the other tow. its ability to meet interest expenses may be questionable.
SOLVENCY RATIO GRAPHICAL ANALYSIS:
.5 or lower.22 which implies that it can easily service its debt obligations. TATA Motors has an ICR of 9. 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.company’s interest coverage ratio is 1. However. An interest coverage ratio below 1 indicates the company is not generating sufficient revenues to satisfy interest expenses.
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
. its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&M’s 15%. ROCE: It indicated the efficiency and profitability of a company’s capital investments. 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%.PROFIT MARGIN RATIO:
This ratio measure how much out of every rupee of sales a company keeps as earnings. ROTA given an idea as to how efficient management is at using its assets to generate earnings. ROCE should always be higher than the rate at which the company borrows. 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. Maruti has the highest profitability among the three companies indicating that it has been most successful in controlling its costs.
PROFITABILITY RATIO GRAPHICAL ANALYSIS:
The MV/BV Ratio for M&M is 5.
PE ratio and MV/BV is lowest among the three companies for TATA Motors. despite the fact that its earnings and book value is higher than M&M. It implies that there is potential in the industry that is not being fully exploited by TATA Motors. 148. While TATA has an ROCE of 25% Maruti’s ROCE is nearly 30%.
.11 which is lower than TATA Motors’s BV of Rs. 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.Inferences about the companies: ROTA and ROCE for TATA Motors is the least among the three companies.2 which is much higher than TATA’s 3.73 despite the fact that M&M’s BV per share is Rs.66 per share.
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%. its ICR is much less as compared to its competitors.
.22 which implies that it can easily service its debt obligations. Given the economic and the industry environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary. TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets are financed through debt. its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&M’s 15%. While TATA has an ROCE of 25% Maruti’s ROCE is nearly 30%. which implies that it has comfortable liquidity position. ROTA and ROCE for TATA Motors is the least among the three companies. Current Ratio for TATA Motors is greater. TATA Motors has an ICR of 9. operating leverage and cost saving initiatives will improve margins. However. however as compared to its competitors it is least liquid since inventories form a considerable portion of its current assets. While a pick-up in its CV volumes is evident. It implies that there is potential in the industry that is not being fully exploited by TATA Motors.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.
Customer Satisfaction Survey of
ROLE OF THE SALES PERSON
• • • • • • • • • • • He should be neatly dressed He should have knowledge about various product’s Features Variants Colors Prices Sales promotion campaigns Competitor products, their features, prices, etc. Latest service and warranty policies Current availability Carry copy of ready reckoner
“Do not leave the customer unattended for more than 3 minutes”
CUSTOMER CARE TEAM:
Role of the Customer Care Manager: Customer Care Manager is the leader of the customer care team. He is accountable for the sales satisfaction index of the dealership. The customer care manager ensures that every customer is properly followed up and feedback is recorded. Also the customer complaints are recorded and resolved as soon as possible to the level of satisfaction. The customer care executives report to the customer care manager. Customer Care Executive:Initially does the Post Sales Follow up (PSF) and monitors the feedback forms at the showroom Post sales follow up. • • PSF’s are done in order to get the first hand feedback from the customer about the experience that they had during the sales and delivery process. The first PSF is done within the 72 hours of delivery and the voice or exact wordings of the customer are recorded. The next PSF call is made after 15 days after the vehicle is
delivered. The feedback form system is a very important tool to obtain customer’s feedback on the experience that the customer had during the purchase of his/her car.
Steps to be followed after receiving customer complaint:
• • • • • • Firstly customer acre manager gives a control number to all complaints received and records the same in the customer complaints control register. Then customer acre manager gets in touch with the customer over the phone and expresses regret on the inconvenience faced by the customer Immediate action is taken to ensure that the customer complaint is resolved and writes a letter of apology The customer care manager along with the concerned DSE, then visits the customer, hands over the letter and takes satisfaction note from the customer Then he sends a copy of the letter and the satisfaction note to Maruti Udyog Ltd. And also files a copy of the same in the customer complaints register/file. Then the CCM discusses the customer complaints in the weekly meeting with the general manager on SSI with the entire showroom staff. Necessary counter measures are taken to ensure that such complaints are not repeated in future. All sales staff and managers review customer care activities on daily, weekly and monthly basis. The SSI review meet is conducted regularly.
According to TATA Motors
“A customer is the most important visitor on our premises He is not dependent on us, We are dependent on him, He is not an interruption on our work, He is the purpose of it. He is not an outsider on our business, He is part of it.
We are not doing him a favor serving him, He is doing us a favor by giving us the Opportunity to do so” How you communicate? Your words Your voice Your body language 7% 35% 58%
Moments of truth Expectation---------------satisfaction---------------------reality If you get what you expected Expectation---------------dissatisfaction----------------reality If you get less than you expected Expectation---------------delight--------------------------reality If you get more than you expected
When customers don’t complain they go somewhere else………. Customers don’t complain. They pass on their dissatisfaction to their colleagues, family, greengrocer, suppliers, consultants, managers, sports club, grandparents, neighbors, director, to you…….
of Respondents 0 0 0 80 20 Percentage 0% 0% 0% 80% 20%
Knowledgeable Salesperson Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
90 80 70 60 50 40 30 20 10 0 No.
How long have you been associated with Tata Motors From 1 year From 1 – 3 years From 3 – 5 years From 5 – 10 years Above 7 years No.Q1. of Respondents 0 0 0 86 14
Percentage 0% 0% 0% 86% 14%
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable. of Respondents Percentage
Employees spent enough time with you during sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
70 60 50 40 30 20 10 0 No.
Employees spent enough time with you before sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 0 0 64 36 Percentage 0% 0% 0% 64% 36%
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
80 60 40 20 0 No.
Q2 (ii). of Respondents
64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this. of Respondents 0 4 0 62 34
Percentage 0% 4% 0% 62% 34%
. of Respondents
Strongly Agree Neither Disagree Nor Agree Agree Strongly Disagree Disagree
Employees spent enough time with you after sales Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 22 0 54 26 Percentage 0% 22% 0% 54% 26%
60 50 40 30 20 10 0 No.
Display of Merchandize Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 0 0 94 6 Percentage 0% 0% 0% 94% 6%
. of Respondents
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
60% agreed that the sales persons spent enough time with them after sales.
Q2 (ii). 26% strongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales. while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this.62% agreed that sales persons spent enough time with them during the sales.
of Respondents Percentage
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive.
Q2 (iv). 5% strongly agreed that the availability was there while only 4% said they disagreed with this.
Q2 (v). of Respondents
Neither Disagree Nor Agree Agree Strongly Agree
No. Of Respondents 0 4 0 91 5
Percentage 0% 4% 0% 91% 5%
Strongly Disagree Disagree
91% agreed that the availability of the product was there.
Variety/Selection of Merchandize Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 6 0 87 7 Percentage 0% 6% 0% 87% 7%
.100 80 60 40 20 0 No.
Availability of the Product Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
100 80 60 40 20 0 No.
16% strongly agreed with this whereas only 2% disagreed with this.
Q2 (vii). of Respondents
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this. of Respondents 0 2 0 82 16
Percentage 0% 2% 0% 82% 16%
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
82% agreed that the vehicle was in good condition when delivered. of Respondents 0 12 15 21 52 Percentage 0% 12% 15% 21% 52%
Prices Are Affordable Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No.2 (vi)
Vehicle in Good Condition Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
90 80 70 60 50 40 30 20 10 0 No. of Respondents
No.90 80 70 60 50 40 30 20 10 0 No.
Disagree Neither Disagree Nor Agree Agree Strongly Agree
Q2 (viii). of Respondents Percentage
Neither Disagree Nor Agree
64% strongly agreed that the prices are affordable. of Respondents 0 0 0 80 20 Percentage 0% 0% 0% 80% 20%
. 34% strongly agreed with this while 11% disagreed and said that the discounts offered were not attractive.
Décor Of The Waiting Area Is Pleasing Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No.
Attractive Discounts Offered Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
60 50 40 30 20 10 0 No. of Respondents 0 26 0 47 27
Percentage 0% 26% 0% 47% 27%
55% agreed that the discounts offered are attractive.60 50 40 30 20 10 0 No.
Q2 (ix). 21% agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this.
Post Sales Follow Up Done Regularly Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. Offered A Test Drive Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents 0 20 0 74 6 Percentage 0% 20% 0% 74% 6%
80 70 60 50 40 30 20 10 0 No. of Respondents Percentage
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
80%agreed that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing Q2 (x). 6% strongly agreed that the test drive was offered while 20% disagreed with this. of Respondents 0 15 0 59 26 Percentage 0% 15% 0% 59% 26%
.80 60 40 20 0 No. of Respondents Percentage
Neither Disagree Nor Agree
74%agreed that the test drive was offered to them.
Responds To complaints Quickly Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. 18% strongly agreed. 12% neither agreed nor disagreed and 6% disagreed with this. 26% strongly agreed and 15%disagreed with this.
. of Percentage Respondents
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
59%agreed that the post sales follow ups are done regularly.60 50 40 30 20 10 0 No.
Q2 (xii). of Respondents 0 9 12 61 18 Percentage 0% 9% 12% 61% 18%
4% agreed that the response to complaints is quick.
Q2 (xiv). 14% strongly agreed while only 4% disagreed with this. of Respondents
Neither Disagree Nor Agree Agree Strongly Agree Strongly Disagree Disagree
Q2 (xiii). of Respondents 0 0 8 85 7 Percentage 0% 0% 8% 85% 7%
. of Respondents 0 4 0 82 14
Percentage 0% 4% 0% 82% 14%
82% said that the service at TATA service station is excellent.
Service At TATA Service Station Is Excellent Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
100 80 60 40 20 0 No.70 60 50 40 30 20 10 0 No.
Careful With Personal Information Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. of Respondents Percentage
Strongly Agree Strongly Disagree Disagree Neither Disagree Nor Agree Agree
of Percentage Respondents
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
85% agreed that yes they were careful with personal information.
.90 80 70 60 50 40 30 20 10 0 No. of Respondents
Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
94% strongly agreed that all the commitments were fulfilled and 6% agreed with this.
All The Commitments Are Fulfilled Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree No. strongly agreed with this and 8% neither agreed nor disagreed. of Respondents 0 7 0 6 87 Percentage 0% 7% 0% 6% 87%
100 80 60 40 20 0 No.
of Respondents 0 0 0 2 98
Percentage 0% 0% 0% 2% 98%
98% strongly agreed that TATA provides value for money while 2% agreed with this. of Respondents 98 2 Percentage 98% 2%
98% said yes that they are aware about TATA insurance while only 2% said that they were not aware.
. of Respondents Percentage
Disagree Neither Disagree Nor Agree Agree Strongly Agree
Are you aware of the following facilities provided by TATA? TATA insurance Yes No No.Q2 (xvi).
Value For Money Strongly Disagree Disagree Neither Disagree Nor Agree Agree Strongly Agree
100 80 60 40 20 0 No.
TATA Motors finance Yes No No.
Q3 (iv). of Respondents 97 3 Percentage 97% 3%
97% said they were aware about extended warranty and 3% said that they did not know about this.Q3 (ii).
Extended warranty Yes No No. of Respondents 75 25 Percentage 75% 25%
Q3 (iii). of Respondents 98 2 Percentage 98% 2%
98% said they were aware about true value and 2% said they were not aware.
True value Yes No No.
Q3 (v). of Respondents 85 15 Percentage 85% 15%
Q3 (vi). of Respondents 84 16 Percentage 84% 16%
84% said that they were aware about autocard and 16% said that they were not aware of it.
Autocard Yes No No.
Genuine Accessories Yes No No.75% said that they were aware about TATA Motors finance and 25% said that they were not aware of it.
85% said that they were aware of genuine accessories available and 15% said they were not aware.
What is your overall opinion about TATA? Choice Very bad Bad Neither bad nor good Good Very good No. of Respondents 0 0 0 4 96 Percentage 0% 0% 0% 4% 96%
100 80 60 40 20 0 No.
. of Respondents
Very bad Bad Neither bad nor good Good Very good
96% said that there overall opinion about TATA was that it is very good while 4% said that it is good.
Q 5. How likely would you recommend TATA?
Recommend Very Unlikely Unlikely Neither Unlikely nor likely Likely Very Likely No.
. of Respondents 0 0 0 10 90 Percentage 0% 0% 0% 10% 90%
90% people said they would very likely recommend TATA to other people and 10% said they would likely recommend TATA to others.
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 satisfactory on all other parameters: knowledgeable sales persons . 26% strongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales. availability of product. responds to complaints quickly.
. vehicle in good condition. 64% strongly agreed that the prices are affordable. display of merchandise is attractive. 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive. The overall opinion about TATA Motors is very good. 82% agreed that the vehicle was in good condition when delivered. 16% strongly agreed with this whereas only 2% disagreed with this. employees spent enough time before and during sales. 64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this. 86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable. décor of the waiting area is pleasing. 5% strongly agreed that the availability was there while only 4% said they disagreed with this. 62% agreed that sales persons spent enough time with them during the sales. service at TATA Motors service station is excellent. variety of merchandize. 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 21% agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this. 91% agreed that the availability of the product was there. prices are affordable. attractive discounts are offered. 60% agreed that the sales persons spent enough time with them after sales. while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this.CONCLUSION
On an average more than 73% people feel that the prices are affordable whereas 12% do not agree. 87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this. careful with personal information and is value for money .
14% strongly agreed while only 4% disagreed with this. 85% agreed that yes they were careful with personal information. strongly agreed with this and 8% neither agreed nor disagreed. 82% said that the service at TATA service station is excellent. 18% strongly agreed. 26% strongly agreed and 15%disagreed with this. 94% strongly agreed that all the commitments were fulfilled and 6% agreed with this. 34% strongly agreed with this while 11% disagreed and said that the discounts offered were not attractive.
. 59% agreed that the post sales follow ups are done regularly. 4% agreed that the response to complaints is quick.55% agreed that the discounts offered are attractive. 12% neither agreed nor disagreed and 6% disagreed with this. 80%agreed that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing 74% agreed that the test drive was offered to them. 98% said yes that they are aware about TATA insurance while only 2% said that they were not aware. 6% strongly agreed that the test drive was offered while 20% disagreed with this.
Should put in more efforts to promote Tata Motor Finance. More test drives should be offered. Improving the marketing Strategies. Making the decision to capture the rural market. Analysis the business strategies of competitors.SUGGESTIONS
Increase the profit margin during the continuous financial years. Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer. Autocard and Accessories.
you are requested to take out a few minutes and fill the following QUESTIONNAIRE:
Name: …………………………………………………………… Address: _______________________________________________________________ _______________________________________________________________ ___________________________________________ Pin Code____________ Gender: Male Age:
Below18 18-25 26-35 36-50 51 and above
Service Business Student Housewife
Q.2.) How would you rate TATA Motors on the following parameter?
Strongly Disagree disagree i) ii) Knowledgeable sales person Employees spent enough time with you: before sales During sales After sales Display of merchandise is attractive Availability of the product Variety/selection of merchandise Vehicle in good condition Prices are affordable Neither agree Nor disagree agree Strongly agree
iii) iv) v) vi) vii)
.1) How long have you been associated with TATA Motors?
Q.Being an esteem customer of TATA Motors Ltd.
viii ) ix)
Attractive discounts offered
Décor of the waiting area is pleasing x) Offered a test drive xi) Post sales follow ups are done regularly xii) Responds to complaints quickly xii) Service at Maruti service station is excellent xvi) Careful with personal information xv) All the commitments are fulfilled xvi) Value for money
.5) How likely would you recommend Tata Motors?
Very Unlikely 1 Very Likely 5
Sign.4) What is your overall opinion about Tata Motors?
Very Bad 1 Bad 2 Neither Bad nor Good 3 Good 4 Very Good 5
Q.3) Are you aware of the following facilities provided by Tata Motors?
i) ii) iii) iv) v) vi) FACILITIES Tata Motors insurance Extended warranty True value Tata finance Autocard Genuine accessories Yes No
745.10 2.225.10 50.20 34.933.80 113.982.10 1.90 5.20 3.00 27.264.459.30 2.40 18.415.60 43.90 1.80 109.614.778.50 37.326.00 32.70 120.015.80 30.50 21.70 67.80 3.00 159.632.203.20 179.359.60 467.158.40 105.50 1.60 58.30 14.70 25.70 14.10 24.223.Other Total Receivables.087.595.721.595.794.40 45.353.30 27.316.50 4.00 91.40 124.983.00 36.015.757.74
.692.50 3.061.90 7.474. Total Additional Paid-In Capital Retained Earnings (Accumulated Deficit) Treasury Stock .368.40 25. Total Total Current Assets Property/Plant/Equipment.228.909.Trade.239.49 As of 2008-03-31 65.836.40 21.Common Other Equity. Total Total Liabilities Redeemable Preferred Stock.133. Net Receivables .10 18.90 10.10 121.70 38. Net Common Stock.364.80 58.50 81.20 3.158.80 202.470.30 26.632.60 23.70 34.323.911.854.607. Total Total Equity Total Liabilities & Shareholders' Equity Shares Outs .10 56.50 40.70 3.390.30 4.20 159.617.60 52. Net Intangibles.90 2.340.70 83. Net Total Inventory Prepaid Expenses Other Current Assets.10 862.303.437.279.70 6.60 4.80 31.015.Non Redeemable.30 385.60 391.10 47.873.618.80 80.70 57.80 169. of LT Debt/Capital Leases Other Current liabilities.90 5.856.687.262.30 90.30 47.180.Summarized Balance Sheet
In Millions of INR (except for per share items) Cash & Equivalents Short Term Investments Cash and Short Term Investments Accounts Receivable .80 10.142.82 As of 2006-03-31 4.792.646.80 369.00 12.235.923.709.80 6.773.422.579.634.998.143.067.70 5.709.10 33.36 As of 2007-03-31 76.828.477. Total Total Assets Accounts Payable Accrued Expenses Notes Payable/Short Term Debt Current Port.279.30 183.762.90 271.135.20 30.115.469.516.198.303.970.30 66.245.30 7.00 14.00 8.054.30 102.968.034.105.752.60 5.70 17.40 361.245.475.Common Stock Primary Issue Total Common Shares Outstanding As of 2009-03-31 52.638.119. Total Gross Goodwill.90 28.659. Total Total Current Liabilities Long Term Debt Capital Lease Obligations Total Long Term Debt Total Debt Deferred Income Tax Minority Interest Other Liabilities.20 1.80 9.442.30 55.390.60 4.015. Net Long Term Investments Other Long Term Assets.80 11.50 7.330.40 21.137.50 3.465.235.792.520.20 3.20 6.033.50 8.40 385.90 11.409.10 264.00 786.143.20 202.10 39.50 3.40 39.358. Total Preferred Stock .40 3.60 34.40 24.697.692.040.60 150.855.20 5.718.40 271.20 52.70 57.897.462.80 14.778.90 606.10 2.711.893.359.415.80 1.10 8.438.30 14.30 7.10 40.383.60 26.90 86.10 103.30 2126.96.36.199 14.103.70 74.440.00 22.00 95.20 382.355.990.422.114.20 24.10 369.
Profit And Loss Account
(Rs in Crs)
95 840.0 6 0 776.461 .11 349.71 0 568.4 8 1.16 1. 43 1.69
Mar 03(12) 10.841.8 7 217.573.4 0 25.374.877.94 2.102.6 1.376. 01 2.017.52 879.52 188.8.131.52 256.37 19.4 7 139.7 2 776.68
Mar 07(12) 31.141.94 295.79 -141.4 4 27.1 8 0 365.244 .48 1.743.2 0 1.56 308.39 606.91 0 40 8.4 123. 48 237.22 1.89 11.053.9 5 24.13 510.699.6 8 1.03 673.37 510. 46 3.1 8 476 177.5 8 193.25 365.190.529.6 3 28.659.42 1.0 6 450.361.6 4 323. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Book Value-Unit Curr
Mar 08(12) 32.85 20.534. 93 327.13 14. 03 4. 59 560.3 0 12.847.34 -29.51 3.181 .598.29 144 17.85 18.807.103.527.29 0 123.879.322. 85 2.2
.6 8 1. 40 972. 32 2.77 1.74 9.6 452.43 0 150 50.228.1 3 20.6 156.473. 21 4.07 0 150 47.263.867.4 3 1.3 4 96 386 810.4 7 586.8 0 1.4 1.4 2 202.41 1.61 3.9 2 149.19 0 125 32.35 142.88 11.303.380.341.3 9 425.87 81.383.57
Mar 06(12) 23.15 1.236.7 9 8.54 2.49 1.49 722. 03 3.576.8 8 1.574.4 4 17.76 497.792 .68 28.581.285.49 2.0 2 985.088.037.13 15.0 7 578.4 6 37.131. 30 693.51 1.5 362.319.442. 77 574.1 177.8 3 578.Year INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalized Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst.76 0 1.013.75 144.028.181.05 24.7 3 1.94 130 37. 94 1.82 51.98 13.93 101.611.9 4 382.1 1 795.383.81 1.337.165.11 0 80 21.4 3 0 1.94 19.29 2.48 29.3 2 520.013. 86 258.654.017.153.55 300.78 218.4 1 1.8 1 293.3 9 214.01 401.46 8.152.913.929.7 9 309. 03 5.71 190.895.528.9 0 363.292.673.1 5 585. 43 3.51 720. 58 3.44 113.876.95 645.3 8 363.5 3 577.270.355.109 .56 19.651.93
Mar 05(12) 20.585.31 2.13 1.11 4.9 3 1.64
Mar 04(12) 15.3 9 1.81 2.19 1.71 127.4 6 0 585.29 872.73 644.674.425.93 -40.293.25 529.885. 55 427.063.91 21.2 4 1.6 0 1.7 8 652. 19 3184.108.40.206 143.9 8 368.676.618.9 1 1.8 282.8 3 0 1.8 8 145.74 784.36 8.65 119.17 0 0 0 176.
13 -2805.5 7 940. 04
1528. 95 1249.39
1913.27 -1077.1 2 2005.in Rs.46 1585. --------
Mar '05 Mar '06
12 mths 12 mths
Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increas e In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents
1236.50 -5721. 82 -956.92 6174.15 826.03 -1.31
2028.Cash Flow of Tata Motors
-----------. 92 771.79 1119.36
2196.6 7 1233.58 -291.46 2210.86
806. Cr.88 -221.21 2391.43
Hill Company Rajan Saxena (Third Edition)
3. Berry and Joel r Evans (Oct. Marketing Management (Thirteenth Edition)
2. 2009) B) BUSINESS STANDARD (April-July 2009) C) 4P’S OF BUSINESS AND MARKETING (June 2009) D) BUSINESS TODAY . The McGraw. Philip Kotler. Berman.Pick and Choose E) BUSINESS TODAY . Land Rover to India
.Tata Motors to bring Jaguar. Marketing Management.BIBLIOGRAPHY
1. Kevin Keller (2009).
A) OUTLOOK BUSINESS (FEB.1997) Retail Management: A strategic approach 8th edition Englewood cliffs NJ printcehall
4. Country analysis 1997 “ A framework to identify and evaluate the national business environment” Hardward business review.
Wiki .moneycontrol/com/tata-group/tatamotors 9.com/doc/12248800/Grand-Project-on-NANO-Car 4.php?ID=458&action=Pull 6.php?ID=500&action=Pull 7.INTERNET:
1.Tata Motors Ltd 3.com/research/cars/tata
. http://www. Tata Motors' Official Website 2.com/our_world/press_releases.tatamotors.tatamotors. http://www. http://www. http://money.docasi.yahoofinance. htttp://www. http://www.com/companies/tata-motors-ltd/10510008/cash-flow 8. http://www.rediff.com/our_world/press_releases.com 5.carwale. http://www.com/tatamotors 10.capitaline.