Scribd
Upload
259 views2 pages

Tata Motors: 2. Impairment of Tangible and Intangible Assets

Tata Motors is a global automobile manufacturer headquartered in India. It offers a wide range of vehicles including cars, SUVs, trucks, buses and defense vehicles. The company operates in several countries globally. Key risks to Tata Motors include the impacts of COVID-19 and economic conditions on global demand, potential impairment of tangible and intangible assets if investments do not generate returns, and supply chain disruptions affecting production and sales.

Uploaded by

Tanishq Rijal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
259 views2 pages

Tata Motors: 2. Impairment of Tangible and Intangible Assets

Tata Motors is a global automobile manufacturer headquartered in India. It offers a wide range of vehicles including cars, SUVs, trucks, buses and defense vehicles. The company operates in several countries globally. Key risks to Tata Motors include the impacts of COVID-19 and economic conditions on global demand, potential impairment of tangible and intangible assets if investments do not generate returns, and supply chain disruptions affecting production and sales.

Uploaded by

Tanishq Rijal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

TATA MOTORS

INTRODUCTION
Tata Motors is a global automobile manufacturing company. Its
diverse portfolio includes an extensive range of cars, sports utility
vehicles (SUV), trucks, buses and defense vehicles. It is India’s largest
and only Original Equipment Manufacturer (OEM) offering a wide
range of integrated, smart and e-mobility solutions. They have
operations in the UK, South Korea, Thailand, South Africa, Indonesia,
Austria and Slovakia.

KEY RISKS
1. COVID-19 and global economic conditions:
The ongoing COVID-19 pandemic has wreaked havoc on the
worldwide economy. Changes in the global economic and
geopolitical landscape, such as trade disputes and Brexit, puts
Tata Motors at risk. The COVID-19 pandemic, as well as the
resulting business interruption in several of the
company's operating areas, could have a significant negative
impact on its operations, liquidity, business, financial
conditions, and credit ratings. External factors may have a
substantial impact on global demand for our cars, as well as
Tata Motors' global sourcing strategy and supply chain
resilience.
2. Impairment of tangible and intangible assets:
Vehicle design, manufacture, and sales necessitate significant
investments in both tangible and intangible assets such as
research and development, product design, and engineering
technologies. Furthermore, market constraints may prevent the
expansion strategy from materialising, and product
development cycles might be lengthy. If the carrying value of
tangible and intangible assets exceeds the business's value, it
could have a material negative impact on our financial
condition and operating results.
3. Supply chain disruptions, distributional channels and retailer
network:
Tata Motors obtains raw materials, parts, and components for
its products from third parties. Its ability to deliver components
to manufacturing processes on time is critical to meeting
production deadlines. Additionally, in order to maximise
market performance, worldwide sales and service channels
must be matched with customer demand using a combination
of advanced and classic means. Failure to provide sales as a
result of retailer capacity, bad service, or capability will result in
market uncompetitiveness. The COVID-19 pandemic has led
significant disruptions on the supply chain, as well as
distributors, dealers, and retailers. If not managed properly,
these disruptions may have a negative impact on production
volume, sales, revenue, profitability, customer happiness, and
brand reputation.

You might also like