Introduction
Tata Motors limited formerly Tata Engineering and Locomotive Company (TELCO) is an
indian multinational automotive manufacturing company headquartered in Mumbai Maharashtra
India. It is a part of Tata Group an Indian conglomerate. Its products include passenger cars
trucks vans coaches buses sports cars construction equipment and military vehicles.
Tata Motors has auto manufacturing and assembly plants in Jamshedpur
PatnagarLucknowSanandDharwad and Pune in India as well as in Argentina South Africa Great
Britain and Thailand. It has research and development centres in Pune Jamshedpur Lucknow and
Dharwad India and South Korea Great Britain and Spain. Tata Motors' principal subsidiaries
purchased the English premium car maker Jaguar Land Rover (the maker of Jaguar and Land
Rover cars and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors
has a bus-manufacturing joint venture with Marco polo S.A. (Tata Marco polo a construction-
equipment manufacturing joint venture with Hitachi ( Tata Hitachi Construction Machinery and
a joint venture with Fiat Chrysler which manufactures automotive components and Fiat Chrysler
and Tata branded vehicles.
Founded in 1945 as a manufacturer of locomotives the company manufactured its first
commercial vehicle in 1954 in a collaboration with Daimler-Benz AG which ended in 1969. Tata
Motors entered the passenger vehicle market in 1988 with the launch of the Tata Mobile
followed by the Tata Sierra in 1991fi becoming the first Indian manufacturer to achieve the
capability of developing a competitive indigenous automobile. In 1998fi Tata launched the first
fully indigenous Indian passenger car the Indica and in 2008 launched the Tata Nano the world's
cheapest car. Tata Motors acquired the South Korean truck manufacturer Daewoo Commercial
Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in 2008.
Tata Motors is listed on the (BSE Bombay Stock Exchange where it is a constituent of the BSE
SENSEX index the National Stock Exchange of India and the New York Stock Exchange. The
company is ranked 265th on the Fortune Global 500 list of the world's biggest corporations as of
2019.
On 17 January 2017fi NatarajanChandrasekaran was appointed chairman of the company Tata
Group. Tata Motors increases its UV market share to over 8% in FY2019.
History
Tata Motors was founded in 1945fi as of locomotive manufacturer. Tata Group entered the
commercial vehicle sector in 1954 after forming a joint venture with Daimler- Benz of Germany.
After years of dominating the Commercial vehicle market in India Tata Motors entered the
passenger vehicle market in 1991 by launching the Tata Sierra a sport utility vehicle based on the
Tata Mobile platform. Tata subsequently launched the Tata Estate (1992; a station wagon design
based on the earlier Tata Mobile the Tata Sumo (1994fi a 5-door SUV and the Tata Safari
(1998ff.
Tata launched the Indica in 1998 the first fully indigenous Indian passenger car. Although
initially criticized by auto analysts its excellent fuel economy powerful engine and an aggressive
marketing strategy made it one of the best selling cars in the history of the Indian automobile
industries. A newer version of the car named Indica V2 was a major improvement over the
previous version and quickly became a mass favourite. Tata Motors also successfully exported
large numbers of the car to South Africa. The success of the Indica played a key role in the
growth of Tata Motors.
In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unitfi Daewoo
Commercial Vehicles Company later renamed Tata Daewoo.
On 27 September 2004fi Ratan Tata the Chairman of Tata Motors rang the opening bell at the
New York Stock Exchange to mark the listing of Tata Motors.
In 2005 Tata Motors acquired a 21% controlling stake in the Spanish bus and coach
manufacturer Hispano Carrocera. Tata Motors continued its market area expansion through the
introduction of new products such as buses (Star bus and Globus jointly developed with
subsidiary Hispano Carrocera and trucks (Novus jointly developed with subsidiary Tata Daewoo.
In 2006 Tata formed a joint venture with the Brazil-based Marco polo Tata Marco polo Bus to
manufacture fully built buses and coaches.
In 2008 Tata Motors acquired the English car maker Jaguar Land Rover manufacturer of the
Jaguar and Land Rover from Ford Motor Company.
In May 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo; the
range went on sale in South Korea South Africa the SAARC countries and the Middle East at the
end of 2009.
Tata acquired full ownership of Hispano Carrocera in 2009.
In 2009 its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National Quality Award.
In 2010 Tata Motors acquired an 80% stake in the Italian design and engineering company Trilix
for €1.85 million. The acquisition formed part of the company's plan to enhance its styling and
design capabilities.
In 2012 Tata Motors announced it would invest around 6 billion in the development of Futuristic
Infantry Combat Vehicles in collaboration with DRDO.
In 2013 Tata Motors announced it will sell in India the first vehicle in the world to run on
compressed air (engines designed by the French company MDI and dubbed "Mini CAT".
In 2014 Tata Motors introduced first Truck Racing championship in India "T1 Prima Truck
Racing Championship".
On 26 January 2014fi the Managing Director Karl Sly was found dead. He fell from the 22nd
floor to the fourth floor of the Shangri-La Hotel in Bangkok where he was to attend a meeting of
Tata Motors Thailand.
On 2 November 2015fi Tata Motors announced Lionel Mess as global brand ambassador at New
Delhi to promote and endorse passenger vehicles globally.
On 27 December 2016fi Tata Motors announced the Bollywood actor Akshay Kumar as brand
Ambassador for its commercial vehicles range.
On 8 March 2017fi Tata Motors announced that it has signed a memorandum of understanding
with Volkswagen to develop vehicles for India's domestic market.
On 3 May 2018fi Tata Motors announced that it sold its aerospace and defence business to
another Tata Group Entity Tata Advance System to unlock their full potential.
On 29 April 2019fi Tata Motors announced a partnership with Nirma University in Ahemedabad
to provide B.Tech degree programme for employees of its Sanand plant.
Strength
Company able to generate Net Cash - Improving Net Cash Flow for last 2 years
Weakness
MFs decreased their shareholding last quarter
Inefficient use of assets to generate profits - ROA declining in the last 2 years
Poor cash generated from core business - Declining Cash Flow from Operations for last 2
years
Decline in Quarterly Net Profit (YoY)
Decline in Quarterly Net Profit with falling Profit Margin (YoY)
Low Piotroski Score: Companies with weak financials
Recent Results: Declining Operating Profit Margin and Net Profits (YoY)
Opportunities
Positive breakout Second resistance (LTP > R2)
Inefficient use of shareholder funds - ROE declining in the last 2 years
Threats
Red Flags: Firms linked to ongoing regulatory investigations/legal cases
Recent broker downgrades in reco or target price
Profit to Loss Companies
Degrowth in Revenue, Profits and Operating Profit Margin in recent results (QoQ)
