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

TATA Motors

Commercial Vehicles

Passenger Vehicles

Military Vehicles

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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 NANOThe Dream Project of Mr. Ratan Tata

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• 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

Competitors

Commercial Vehicles

Passenger Vehicle

• Ashok Leyland

• Volvo Motors

• Swaraz Mazda

• Mahindra Motors

• Maruti Suzuki

• Honda Motors

• Hyundai Motors

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Market Share

45.7

22.2

18.3

6.8

1.5 5.5

Maruti Suzuki

Tata Motors

Hyundai Motors

Honda Motors

Toyota

Others

Passenger Car Market Share

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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 HighlightsStock Of Tata Motors

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FinanceDebt

• 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%

Effect of External Environment on Tata Motors(2008 – 2009 )

• External Environment• Market Conditions• Government Policies• Consumer Sentiments• Over Capacity in the Market

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• CV sales dripped by 15.2%• PV sales fell by 4.8%• Exports reduced by 38.6%• Total Sales fell by 13.5%

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

WEAKNESSNo foothold – Luxury SegmentBranding – Mainly in Commercial Vehicle

OPPROTUNITIESExplore ExportsInternational MarketLow Cost Manufacturing & Development Capability

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

TATA Motors - SWOT

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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 You19