A Study On: Tata Motors

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A Study on

Tata Motors
Introduction

• Tata Motors Limited, formerly known as TELCO (TATA Engineering & Locomotive

Co.)

• Established in 1945 in Mumbai, India

• Chairman – Mr. Ratan Tata

• Began manufacturing locomotives

• First commercial vehicle in 1954 in a collaboration with Daimler- Benz AG

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Introduction

• Mercedes and Tata teamed up to create a truck line.

• Together both companies started their commercial vehicle operations in 1960.

• 1986 the company created and sold the first Light Commercial Vehicle.

• Largest Commercial Vehicle Manufacturer in India.

• Among the Top 3 Passenger Vehicle Manufacturer in India

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Products

Passenger Vehicles

Commercial
Military Vehicles
Vehicles

TATA
Motors

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Products

Tata Commercial Vehicles

• High Technology & Expertise

• High Engine Power Vehicles

• Launched 11 New Products (2008 -09 )

• Wide array of commercial vehicles


• Trucks & Tractors
• Light Commercial Vehicles
• Luxury buses & Compact City Buses

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Products

Tata Military Vehicles

• Specialization in Military Defense Transport Solution

• Introducing new trucks for military defense purpose

• Large Investments in R & D ,to meet international standards

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Products

Tata Passenger Vehicles


• Tata Motors entered the passenger vehicle market in 1992.
• In 1998 Tata launched the Indica, the first fully passenger car.
• TATA Motors developed :
• Mid-sized sedan Cars (Tata Indica, Tata Indigo)
• Mid-sized SUV Cars (Tata Safari)
• Tata Motors has Launched Various Version of Passenger Cars.
• The first company ever to launch One Lakh Rupee Car, the Tata Nano.
• It is the least expensive production car in the world.

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Tata NANO
The Dream Project of Mr. Ratan Tata

• Launched in Mumbai on 23rd March,2009 by Mr. Ratan Tata


• Cheapest Car in the World
• Priced at Rs 1 Lakh
• For the Masses. Common Man’s Car
• Received Wall street Journal Technology Innovation Award
• Received Rs.25 Bn from the booking process
• Huge demand in the market ,less supply
• Plan to launch in European Markets

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Competitors

• Maruti Suzuki
• Ashok Leyland
• Honda Motors
• Volvo Motors
• Hyundai Motors
• Swaraz Mazda

• Mahindra Motors

Commercial Passenger
Vehicles Vehicle

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Market Share
Passenger Car Market Share

1.5 5.5
6.8
Maruti Suzuki
18.3 45.7 Tata Motors

Hyundai Motors

Honda Motors
22.2 Toyota

Others

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Merger Acquisitions & Joint Ventures

• Tata Motors has been aggressively acquiring foreign brands to increase its global
presence.

• 2004 - Bought Daewoo's truck manufacturing unit,


- Now known as Tata Daewoo Commercial Vehicle, in South Korea.

• 2005 - Acquired a 21% stake in Hispano Carrocera, Spain.

• 2006 – JV with Fiat to manufacture Passenger Cars and Engines

• 2008 - Purchased Jaguar Cars and Land Rover from Ford Motor for $2.3bn

• 2008 - Acquired rights from Ford, to three other brand names: Daimler, Lanchester and
Rover

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Financial Highlights
Stock Of Tata Motors

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Finance
Debt

• Posted High Debt in the year 2008 – 2009 due to acquisition of Jaguar

• Company’s net debt increased by 75 Bn

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Stand Alone Profit & Loss – 2009

• Net Revenue has decreased by 11%


• Company’s profit fell by 61%

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Effect of External Environment on Tata Motors
(2008 – 2009 )
• External Environment
• Market Conditions
• CV sales dripped by 15.2%
• Government Policies • PV sales fell by 4.8%
• Consumer Sentiments • Exports reduced by 38.6%
• Over Capacity in the Market • Total Sales fell by 13.5%

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Strategies

 Introduction of New Versions

 Modifications in Older Vehicles. (Sumo)

 Introduction of Cost Effective Cars ( Nano)

 Tapping the Rural Market

 Tata Motor Finance

 Tie up with various State Government for providing Tata Buses for public services.

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TATA Motors - SWOT

STRENGHTS
• Market Leader – Commercial Vehicles
• Strong Monetary Base of Tata Group
• Top Level Management

WEAKNESS
No foothold – Luxury Segment
Branding – Mainly in Commercial Vehicle

OPPROTUNITIES
Explore Exports
International Market
Low Cost Manufacturing & Development Capability

THREATS
• Existing players in the International Market
• Competition from Foreign Companies in India - Volvo

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Future Plans

 Current Business Condition are Uncertain , however industry expects the economy
to grow by Q4,2009
 Major Future Plans

1. Capitalize on Tata Nano - Fast Delivery

2. Launch New Commercial Vehicles


3. Tie up with more State Govts. for Efficient & Safe City Buses at low cost

4. Launch of Jaguar & Landrover Vehicles in India

5. Bridge the outstanding loans

6. Focus on Cost Reduction

7. Expand Network

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Reference
• www.tatamotors.com
• www.finance.yahoo.com
• www.automobileindia.com
• www.economictimes.com

Thank You
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