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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