Presented By Group 4 :

● Abhishek Agarwal (241250003)

● Charvi Singhal (241250015)
● Devesh Sanya (241250017)
● Mahendra H N (241250029)
● Tribhuvan Singh Chandel (241250055)
● Mansi Tripathi (232140601)

TATA MOTORS
 Contents

1. Introduction
1.1. History
1.2. Growth & development

2. What does the organization do?

2.1. Goods and Services provided
2.2. Kind of value it creates
2.3. Company’s organizational mission based on their report

3. Value creation
3.1. Input
3.2. Throughput
3.3. Output
3.4. Environment

4. Initial analysis of organization’s major problems or issues

4.1. Market Competition and Customer Attraction
4.2. Cost Management and Profitability
4.3. Operational Efficiency
4.4. Organizational Design and Structure
4.5. Sustainability and Environmental Regulations

5. Organization’s goals, standards, & targets determined from their Annual Report
5.1. Sustainability
5.2. Performance Evaluation

6. Effect of market forces to obtain its resources and dispose of its goods/services
6.1. External Forces Affecting Tata Motors

7. Review of the corporate governance structure

7.1. Critical view on Board composition
7.2. Critical View on Tata Motors' Board Skills, Expertise, and Competencies
7.3. Critical view on Board committee
7.4. Ethical standards

8. Resources

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 1. Introduction

● Tata Motors Limited (TML) is India's largest automobile company and a prominent global
manufacturer of various vehicles, including cars, utility vehicles, buses, trucks, and defense
vehicles. Established in 1945 and part of the Tata Group founded in 1868, Tata Motors is
known for its high-quality, innovative, and well-designed products. The company is committed
to sustainability and corporate social responsibility. With a strong international presence and
76 subsidiaries worldwide, Tata Motors continues to expand its global footprint through
strategic mergers and acquisitions.
● Consolidated revenue of Tata Motors from operations was ₹4,37,928 crores in FY24.
● The consolidated EBITDA margin was at 14.3% in FY24.
● Market share (FY’ 24) –
❖ PV – 14%
❖ EV – 73%
❖ CV – 12%

1.1. History

● 1945 – Company started by manufacturing locomotives. Company name was TELCO

(Tata Engineering and Locomotive company). Tata Sons formally acquires E.I. Railway
workshop. Assigned the responsibility of assembling 5000 imported wagons on behalf
of the Railway board.
● 1954 – Agreement with Daimler-Benz. First rollout of Tata Mercedes-Benz truck. First
“heavy-duty truck” manufactured in India.
● 1991 – First Home grown SUV (Tata Sierra) completely designed and manufactured
locally.
● 1998 – India’s first indigenously developed car “Tata Indica”
● 2005 – India’s most popular mini truck “Tata Ace”
● 2020 – India’s most popular EV “Tata Nexon”

Fig. no. (1.1): History of Tata motors

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1.2. Growth & development

1. Simplification
a. Tata Motors, founded in 1945, began as a commercial vehicle manufacturer. In
the 1990s, it entered the passenger vehicle market with the Tata Indica. The
acquisition of Jaguar Land Rover in 2008 marked its global expansion into the
luxury segment. Today, Tata Motors is a leading automotive company focusing on
innovation, electric vehicles, and sustainability.
b. Tata Motors Finance to be merged with Tata Capital.
c. Today, Tata Motors is a leading player in the global automotive industry, known
for its range of commercial vehicles, passenger cars, and luxury brands. It
continues to grow by embracing new technologies and expanding its market
presence both in India and internationally.
2. Net Debt Zero Journey
a. India business net debt free in FY24.
b. JLR on track to become net debt free in FY25.
c. Value unlock in EV Company through TPG deal, successful divestment of TTL
investment.
d. All businesses are self-sustaining; investment spends are well funded.
3. Business will be demerged next year to maximize potential of each of these
businesses
a. Both CV and PV businesses have grown sizably in the past few years. Limited
synergies between CV and PV business.
b. Considerable synergies to be harnessed across PV, EV and JLR in areas of
EV’s, autonomous vehicles and vehicle software.
c. Demerger shall further empower the respective businesses to pursue their
respective strategies to deliver higher growth with greater agility while reinforcing
accountability.
d. This will lead to a superior experience for customers and enhanced value for
shareholders.
4. Leading the sustainability journey
a. Driving net zero - Rooftop solar panels installed in plants
b. Circularity - Three Plants water neutral, rest by FY30; Setup Tata Re.Wi.Re
Facilities (Registered Vehicle Scrappage Facility)
c. Preserving nature & biodiversity - Biodiversity baseline study completed;
action plan in place

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 Fig. no. (1.2): TML results for quarter ended March 31,2024

2. What does the organization do?

Tata Motors is involved in several key activities:

● Automobile Manufacturing: Tata Motors designs, produces, and markets a wide range
of vehicles, including passenger cars, trucks, buses, vans, and military vehicles.
● Passenger Vehicles: The company offers a variety of passenger cars under its brand,
such as the Tata Tiago, Tata Tigor, Tata Nexon, and Tata Harrier.
● Commercial Vehicles: Tata Motors is a major player in the commercial vehicle sector,
manufacturing trucks, buses, and light commercial vehicles for both domestic and
international markets.
● Electric Vehicles (EVs): Focused on sustainability, Tata Motors is expanding its electric
vehicle lineup with models like the Tata Nexon EV and Tigor EV, contributing to the shift
towards electric mobility in India.
● Global Operations: The company has a strong international presence, with
manufacturing facilities in multiple countries and significant market positions in Europe,
Africa, the Middle East, and Southeast Asia. It also owns the luxury brands Jaguar and
Land Rover.
● Innovation and R&D: Tata Motors invests heavily in research and development,
pursuing advancements in vehicle design, safety, sustainability, and emerging
technologies such as autonomous driving and connected vehicles.

Tata Motors is dedicated to shaping the future of mobility through its revolutionary transportation
solutions and cutting edge technology. The company's vision is to become the most aspirational
Indian automotive brand by delivering superior financial returns, driving sustainable mobility solutions,
exceeding customer expectations, and fostering a highly engaged workforce. Their mission is to
innovate mobility solutions with passion, enhancing the quality of life for their customers and
stakeholders.

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 Fig. no. (2): Business Model

2.1. Products and Services offered

Tata Motors Limited, headquartered in Mumbai, India, is a leading global automotive company known
for innovation, sustainability, and customer satisfaction.

● Products:
1. Passenger Vehicles: Includes hatchbacks (Tiago, Altroz), sedans (Tigor), SUVs (Nexon,
Harrier, Safari), and EVs (Nexon EV, Tigor EV, Altroz EV).
2. Commercial Vehicles: Features trucks (light to heavy duty), buses, vans (Ace), and
specialized vehicles for construction and mining.
3. Luxury Vehicles: Offers Jaguar and Land Rover models.
4. Electric Vehicles (EVs): Focuses on expanding EV options and infrastructure, with
initiatives like Tata UniEVerse.

● Services:
1. Vehicle Financing: Loans and leasing via Tata Motors Finance.
2. AfterSales Services: Maintenance, repairs, extended warranties, roadside assistance, and
connected vehicle solutions.
3. EV Charging Infrastructure: Partnering with Tata Power to expand EV charging networks.
4. Customization: Tailors commercial vehicles for specific needs.

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 Fig. no. (2.1): How does Tata Motors earn money

2.2. Kind of value it creates

Tata Motors generates significant value across multiple dimensions:

1. Customer Value: Provides quality, reliability, and innovative vehicles.

2. Economic Value: A major employer and economic contributor, benefiting local industries and
shareholders.
3. Social Value: Enhances community life through CSR initiatives in education, healthcare, and
development.
4. Environmental Value: Leads in sustainability and electric mobility, with eco-friendly
manufacturing.
5. Innovation and Knowledge Value: Invests in R&D to drive automotive innovation and global
knowledge exchange.
6. Brand Value: Gains from Tata Group’s strong ethical reputation, enhancing global brand
recognition.

2.3) Company’s organizational mission based on their report

Tata Motors describes its organizational mission as driving sustainable mobility solutions globally. The
company's mission aligns with its broader values of creating innovative, high quality products and
services that contribute to economic and environmental sustainability. Tata Motors is committed to
addressing global challenges, such as reducing carbon emissions, by focusing on the development of
electric vehicles, enhancing efficiency in conventional vehicles, and adopting new technologies that

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reduce environmental impact. This mission is a core part of Tata Motors' strategy to deliver long term
value to stakeholders while contributing to the larger goal of sustainable development.

3. Value creation

Fig. no. (3.1): Value Creation of tata motors

3.1 Input
● Raw Materials: Steel, aluminum, and other materials used to build vehicles.
● Labor: Skilled workers and engineers involved in production and design.
● Capital: Financial investments in equipment, technology, and innovation.
● Technology: Advanced machinery, automation, and software systems.
● Supply Chain: Components and parts sourced from suppliers.

3.2 Throughput
● Manufacturing Processes: The assembly and production steps that transform raw materials
into finished vehicles.
● Research and Development (R&D): Innovation and testing processes to create new vehicle
models and improve existing ones.
● Logistics and Distribution: Management of transportation, storage, and delivery of vehicles
to dealers and customers.

3.3 Output
● Finished Vehicles: The cars, trucks, and other vehicles that are produced and sold.
● Revenue: Money earned from vehicle sales and services.
● Brand Value: The market reputation and customer loyalty that Tata Motors builds over time.

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3.4 Environment
● Economic Environment: The overall economic conditions, including market demand and
economic policies, that affect business operations.
● Regulatory Environment: Government regulations on safety, emissions, and manufacturing
standards that Tata Motors must comply with.
● Competitive Environment: The presence of other automotive companies and the competition
in the industry.
● Technological Environment: Innovations in automotive technology, such as electric vehicles,
that impact the company.
● Social and Cultural Environment: Consumer preferences, trends, and societal expectations,
such as the shift towards sustainable and eco-friendly vehicles.

4. Initial analysis of organization’s major problems or issues

Tata Motors, one of India's largest automotive manufacturers, faces several significant challenges in
today's competitive and rapidly evolving market. Here’s an analysis of the major problems or issues
the company confronts, with a focus on customer attraction, cost management, operational efficiency,
and the impact of organizational design:

4.1. Market Competition and Customer Attraction

● Challenge: Tata Motors faces intense competition from both domestic and international
players in the automotive industry, particularly in the passenger vehicle (PV) segment.
Competitors like Maruti Suzuki, Hyundai, and Mahindra offer strong products with established
brand loyalty.
● Customer Perception: Historically, Tata Motors has struggled with a perception of lower
quality and reliability compared to competitors. Despite recent improvements, changing this
perception has been challenging.
● EV Transition: As the market shifts towards electric vehicles (EVs), Tata Motors has invested
in developing EVs under its "Tata Passenger Electric Mobility" brand. However, the company
faces challenges in scaling production, ensuring adequate charging infrastructure, and
competing against other EV players.

4.2. Cost Management and Profitability

● High Input Costs: Rising raw material prices, particularly steel and aluminum, have increased
production costs. This has put pressure on margins, especially in the highly price-sensitive
Indian market.

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 ● Global Supply Chain Issues: The global semiconductor shortage has severely impacted
production, leading to delays and higher costs. Managing this supply chain disruption remains
a significant challenge.
● Currency Fluctuations: Tata Motors, with its global operations (including Jaguar Land Rover),
is exposed to currency risks. Fluctuations in foreign exchange rates can adversely affect
profitability.
● Debt: Tata Motors has made significant progress in addressing its debt situation. As of the
financial year 2024 (FY24), they are net debt-free, marking a major milestone in its financial
recovery plan. This achievement came after years of strategic planning, particularly within its
automotive business.

The company's India operations are already debt-free, and Jaguar Land Rover (JLR), its UK-based
subsidiary, is on track to achieve net debt-free status by FY25. Tata Motors' focus on generating
positive cash flows, reducing investment spends, and improving operational efficiency has been key
to this turnaround. The company has also committed to maintaining this momentum, ensuring all
businesses are self-sustaining with well-funded investment plans.

4.3. Operational Efficiency

● Production Bottlenecks: The semiconductor shortage has not only increased costs but also
created production bottlenecks, affecting the timely delivery of vehicles.
● Complex Product Portfolio: Tata Motors has a diverse product portfolio, from commercial
vehicles to luxury cars under Jaguar Land Rover (JLR). Managing such a broad range of
products efficiently requires robust supply chain management and operational efficiency.
● Legacy Systems: Some of Tata Motors' manufacturing and operational systems may be
outdated, leading to inefficiencies. The transition to more modern, digitized processes is
ongoing but not yet fully realized.

4.4. Organizational Design and Structure

● Complex Organizational Structure: Tata Motors' complex organizational structure, with
divisions like Tata Passenger Electric Mobility and Jaguar Land Rover, can cause
communication issues, slower decision-making, and difficulties in implementing unified
strategies.
● Leadership and Talent Management: Frequent leadership changes, especially at Jaguar
Land Rover, have impacted the company's stability. Consistent leadership is vital for navigating
challenges in a competitive global market.
● Innovation and R&D: Tata Motors’ complex structure may slow innovation in EVs and
connected vehicles. Streamlining R&D and fostering a culture of innovation across divisions is
essential to stay competitive.

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4.5. Sustainability and Environmental Regulations
● Regulatory Compliance: With increasing global and local regulations around emissions and
sustainability, Tata Motors must invest significantly in cleaner technologies. Meeting these
regulatory standards while maintaining profitability is a major challenge.
● Sustainability Initiatives: The company’s push towards electric mobility and sustainability
requires significant capital investment. Balancing these investments with short-term profitability
is a delicate act.

5. Organization’s goals, standards, & targets determined from their Annual Report

5.1 Sustainability:
1. Net zero emissions by 2045.
a. 44% reduction in emissions intensity over three years.
b. 300 MW increase in renewable energy capacity planned.
2. Market Leadership:
a. 73.1% market share in the Indian EV market.
b. Targeting 73,844 EVs sold.
3. Financial Performance:
a. 26.6% revenue growth.
b. EBITDA margin up by 360 basis points to 14.3%.

5.2 Performance Evaluation

1. Control:
● Compliance and Safety: Transitioned to BS VI Phase II standards; introduced advanced
safety features and ADAS in vehicles.
● Debt Management: Debt-free in India; aims for net automotive debt-free status by FY25.
● Technology Integration: Integrated Modular Firmware Over-the-Air (FOTA) updates.

2. Innovation:
● R&D: Invests in patents and innovations like Hydrogen Fuel Cell buses and twin-cylinder CNG
technology.
● Product Launches: New CNG, LNG, and electric buses introduced.
● Awards: Recognized for innovation in products and processes.

3. Efficiency:
● Marketing and Customer Engagement: Targeted digital marketing and influencer advocacy.
● Operational Efficiency: EBITDA up to 14.3%; streamlined updates with FOTA.
● Infrastructure: Installed 10,000+ public EV chargers; plans to add 22,000+ more.

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 Fig. no. (5.1): Sustainability

6. Effect of market forces to obtain its resources and dispose of its goods/services

6.1 External Forces Affecting Tata Motors:

● Opportunities:
1. Global Economic Growth: Rising incomes and economic recovery, especially in China, open new
market opportunities.
2. Supply Chain Management: Effective risk management can mitigate disruptions and optimize
sales through a strong retailer network.
3. Innovation: Advances in ACES (Autonomous, Connected, Electrified, Shared) technologies and
product enhancements can drive growth.
4. Sustainability: Electrification initiatives and adherence to environmental regulations improve
market position and compliance.
5. Market Expansion: Developing products and entering new markets strengthen the portfolio and
capture growth potential.
● Risks:
1. COVID-19 and Economic Conditions: Disruptions impact operations, liquidity, and global
demand.
2. Asset Impairment: Investment in R&D and technology may not yield expected growth, affecting
financial health.
3. Supply Chain Disruptions: Reliance on third parties and pandemic-related disruptions affect
production and sales.

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4. Credit Rating and Liquidity: External challenges and COVID-19 impact credit ratings and
liquidity.
5. Intensifying Competition: Increased competition and rapid technological changes pose risks to
brand positioning and market share.
6. Regulatory Compliance: Evolving environmental regulations may increase costs and impact
production.

Tata Motors must navigate these external forces to leverage opportunities and mitigate risks for
sustainable growth and competitiveness.

7. Review of the corporate governance structure

● Tata Motors adheres to the Tata Group’s tradition of ethical governance, emphasizing
professionalism, integrity, and transparency. The company follows international standards and
best practices, including the Tata Code of Conduct and compliance with the Companies Act,
2013, and SEBI regulations. Governance practices include mechanisms for reporting
non-compliance, adherence to insider trading laws, and use of the Tata Business Excellence
Model and Balanced Scorecard for strategic progress. Tata Motors maintains robust risk
management and internal controls, with an IT-enabled compliance system and quarterly
reports to the Board of Directors.

Fig. no. (7): Corporate governance framework

7.1 Critical view on Board composition

Tata Motors' Board of Directors shows solid governance, but there are areas to refine:

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 ● Strengths:
1. Regulatory Compliance: Adheres to SEBI and Companies Act requirements with 87.5%
Non-Executive Directors (NEDs) and a majority of Independent Directors (IDs).
2. Gender Diversity: Includes three women Independent Directors, enhancing decision-making.
3. Independence: Strong adherence to SEBI's criteria for Independent Directors ensures objectivity.
4. Role Separation: Clear division between Non-Executive Chairman and executive roles prevents
power concentration.
5. Governance Commitment: Directors are limited in their external directorships and committee
roles, minimizing conflicts of interest.

● Areas for Improvement:

1. Effectiveness of Independent Directors: Their influence on strategic decisions needs
enhancement in the complex organization.
2. Broader Diversity: Further diversity in age, ethnicity, and international experience would benefit
the global operations.
3. Board Size: Increasing the board size could bring more expertise and improve workload
distribution.
4. Engagement: The quality of board discussions is critical for effective oversight.
5. Succession Planning: Developing a robust succession plan is needed for leadership continuity.

Overall, Tata Motors has a strong governance base but could improve in diversity, board size, and
succession planning to better manage global complexities and drive long-term value.

7.2 Critical View on Tata Motors' Board Skills, Expertise, and Competencies

● Strengths:
1. Diverse Expertise: Includes skills in leadership, engineering, technology, finance, and
global markets, vital for navigating the automotive sector.
2. Industry Knowledge: Directors with automotive experience provide valuable insights into market
trends and innovation.
3. Strategic Skills: Expertise in mergers, acquisitions, sales, and marketing supports growth and
adaptation.
4. Governance: Strong focus on accountability and high corporate governance standards.

● Areas for Improvement:

1. Digital Expertise: Need for stronger focus on digital transformation and cybersecurity.
2. Customer-Centric Skills: Greater emphasis on customer experience and digital marketing.
3. Sustainability: Enhance knowledge in sustainability and environmental regulations.
4. Global Regulatory Knowledge: More expertise in global regulations, especially in key markets.
5. Innovation: Increased focus on innovation management and adapting to industry disruptions.

Expanding expertise in these areas will better equip the board to navigate the evolving automotive
landscape.

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7.3 Critical view on Board committee

Tata Motors’ Board Committees, particularly the Audit Committee, play a crucial role in overseeing
financial reporting, internal controls, and compliance. A review of their structure and functioning
reveals strengths and areas for enhancement.

● Strengths:
1. Regulatory Compliance: The committees are well-structured, adhering to SEBI Listing
Regulations and the Companies Act, with clear roles and responsibilities.
2. Expertise and Independence: The Audit Committee, composed entirely of financially literate
Independent Directors, ensures effective oversight and independence from management.
3. Active Engagement: Frequent meetings (eight during the year) indicate diligent oversight of the
company’s financial health and operations.
4. Comprehensive Oversight: The committee covers critical areas like financial review, risk
management, and compliance, ensuring operational integrity.
5. Transparency: The submission of meeting minutes to the board and the Chairperson’s presence
at the AGM highlight a commitment to transparency.

● Areas for Improvement:

1. Independence in Judgment: The committee should guard against overreliance on management
and external auditors, ensuring independent decision-making.
2. Diversity in Expertise: Expanding the committee’s composition to include expertise in technology
and digital transformation could enhance its risk management capabilities.
3. Internal Controls: Regular, rigorous audits, especially in areas like cybersecurity, are essential for
maintaining robust internal controls.
4. Non-Financial Risks: The committee’s mandate could be broadened to include oversight of
sustainability and ESG risks, reflecting growing industry importance.
5. Stakeholder Engagement: Increased proactive engagement with external stakeholders, such as
shareholders and regulators, could enhance governance effectiveness.

While Tata Motors' Board Committees are strong in governance and compliance, diversifying
expertise, enhancing risk oversight, and improving stakeholder engagement could further strengthen
their effectiveness in a dynamic business environment.

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 Fig. no. (7.1): Board composition

7.4 Ethical standards

Tata Motors upholds strong ethical standards aligned with Tata Group values, focusing on:

1. Integrity and Transparency: Emphasizes honesty and openness in operations.

2. Respect for Individuals: Promotes diversity, inclusion, and a safe workplace.
3. Corporate Governance: Adheres to high ethical and legal standards.
4. Social Responsibility: Engages in social development and environmental sustainability.
5. Customer Focus: Ensures product safety, quality, and transparent customer interactions.
6. Compliance: Follows all relevant laws, including anti-bribery and anti-corruption regulations.
7. Sustainability: Committed to reducing environmental impact and promoting energy efficiency.
8. Accountability: Holds itself and its employees accountable for ethical conduct.
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These principles are integrated into Tata Motors' Code of Conduct, which is regularly updated to
address new challenges.

Fig. no. (7.4):CSR Programs and Projects

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 8. Resources

1. https://www.tatamotors.com/wp-content/uploads/2024/06/tata-motors-group-investor-day-prese
ntation.pdf
2. https://www.bseindia.com/xml-data/corpfiling/AttachHis/0913b647-b205-4a3c-ad9b-8c493f97f9
72.pdf
3. https://tatamotors.com/corporate-governance/
4. https://www.bajajbroking.in/blog/tata-motors#An_Overview
5. https://youthcouncilofindia.org/tata-motors-share-price-target/
6. https://businessmodelanalyst.com/tata-motors-business-model/
7. https://www.tataworld.com/news/openinside/tata-motors-declared-its-consolidated-financial-res
ults-for-the-year-ended-march-2024

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