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TATA MOTORS LIMITED

The largest passenger automobile and commercial vehicle


manufacturing company of India Tata Motors Limited, was formerly
called TELCO (TATA Engineering and Locomotive Company), has its
headquarters in Bombay, now Mumbai, India. Established in 1945,
listed on the New York Stock Exchange in 2004 has created Rest.
320 billion wealth and was one of the top10 wealth creators in India,
With manufacturing facilities in the towns of Jamshedpur,
Lucknow,and Pune. Jamshetji Tata founded this company and is run
by Ratan Tata under the flagship company known as Tata and sons
group. He commands 22000 employees working in three plants as
well as other regional and zonal offices across the length and
breadth of India. Tata motors passenger cars still need to reach
acceptable international requirements. The company commands an
imposing 65% share of the domestic commercial vehicle market and
is trying to modernize this segment. The financial business of Tata
motors was separated into a subsidiary company in Sep. 2006,
where it recorded a strong financial performance during the last 5year period. From year 2003-2007, the profits of the company went
up at a CAGR of 36.4%, to attain Rest. 331, 525 million in 2007 from
Rest. 95, 731 Million in 2003. By floating two rights issues at the end
of Sep 2008 Tata Motors Ltd expected to raise Rest 4, 150 cores.
They are offering one ordinary share valued at Rest. 340 every six
shares expecting to net Rest. 2.90 Crores, the so called A share
would have different voting and dividend rights, for every such 6
shares held at a face value of 305 would raise Rest. 1.960 Crores,
these proceed would be utilized for a nearly repayment of the short
term funding of 2.3 Billion $ (Rest. 10,189 Crores) Borrowed for
Acquisition of jaguar and Land Rover from their principle The Ford
Motor Companys. It is also in talks with private equity funds to
offload 25% of stake in each of the following 6 unlisted group units,
they are Tata Daewoo commercial vehicle company, HV
transmissions, Tata motors finance, Tata technologies and TELCO
construction equipment, the sales of the stakes would possible
conclude by June 2009, helping it to raise further funds for this
acquisition, earlier in July it sold 24% stake in an Auto component
unit to a group firm and booked a profit of Rest. 110 cores, it also
sold 10 million shares or 1.36% of Tata steel for RS.486 cores to Tata
Sons, the holding company of whole Tata group firms.


"TheCompanyaimstomonetizeapartofitsfundsthroughaphaseddivestmentof
certaininvestmentspreferablyasintergroupsaleswhereverpossibleatcurrent
marketpricesinthecomingsixtoeightmonths,"themoneythatwillbereleased
fromtheseinvestmentswillbecomeapartofthecapitaltobeliftedforrepaymentof
thebridgingloantakenfortheJaguarLandRoveracquisition.TakeninMarch2008"
(TataMotorsProfile)Ittooka15monthbridgeloanof3billioninMarchfroma
consortiumofbankstofinancetheJLRaccusationanditsexpansionplansSincethe
rightsissuewasannouncedon28themayitssharevaluehasfallenmorethan30%
andfellby1.82%toRest.429.85onBSE,eventhoughthebenchmarkindexgained
3.8%toendat15,049.86points.

TheAnalystssaythat,thisisastrategicmovetakenbyTataMotorsbecauseitis
allowingthecompanytomakealotofprofitevenwhenthemarketisinthefinancial
pressureallowsTatasonstoraiseitswageringroupcompanies.Ifthecompanywill
followtheabovementionedtrendsthenpossiblyitcanraiseitsfinancesinallow
liquidityandhighinterestratesetup.

INDUSTRYOUTLOOK
TheIndianAutomobileIndustryenjoystheadvantageoflowcostbase,high
skilledlabour,strongancillarynetworkcoupledwithGovernmentssupportbywayof
concessionalexcisedutyof16%forsmallcars,banonoverloadingandalso
significantinvestmentsproposedforremovinginfrastructurebottlenecks.TheCV
industryisdirectlyrelatedtotheeconomicgrowthanddevelopment.Thegrowthin
demandforCVsisdirectlyrelatedtotheIIPindexandanyupsurgeineconomic
activitieswillcallformorecargomovementintheeconomy.ThedomesticCV
marketgrewataCAGRof26.7%duringthelast6years.InFY07,thecasegment
registeredagrowthof32.2%duetoSupremeCourtsbanonoverloadingtrucks.

However,webelievethatthisisaonetimedemandandtheCVsegmentmaynot
witnesssuchkindofgrowthrepeatedly.Thereisaregulationthatrestrictsthe
movementofvehiclesabovecertainage(15yearsinNationalCapitalRegionand8
yearsinMumbai).Thoughtheruleisnotbeingfollowedstrictlyatpresent,infuture
ifthisruleisimplementedstrictlyitwillresultinhumereplacementdemand.Withthe
Indianeconomyexpectedtogrowat8.5%to9%incomingyears,weexpectthe
demandforCVstobefairlydecentexceptforthefactthattheindustryiscurrently
experiencingcorrectionduetosharpspurtindemandinthepreviousyears.TheCV
industrywitnessedachangeindemanddynamicsinlastfewyears.Thedemandfor
LCVsinthe<=3.5tonessegmentisrisingatthecostofdemandin5to7.5tones
category,whiledemandin7.5to12tonessegmentand16.2to25tonessegmentis
boomingatthecostofdemandin12to16.2tonessegment.Demandfortrailersof
>35.2tonesiswitnessingasurgewhiledemandforsemitrailersin26.4to35.2tones
segmentissuffering.Thisstructuralshiftindemanddynamicsisduetotheevolution
ofHub&Spokemodelofdistribution,whichisnowadoptedbytransportation
playersbecauseofimprovedroadinfrastructureandalsothebacontrucksinmany
citiesbytheauthoritiestotacklethetrafficcongestionissues.

History of TATA Motors

1. Tata Motors launches its first truck in collaboration with Mercedes-Benz.


TataMotorsisapartoftheTataandSonsGroup,foundedbyJamshedjiNussarwanji
TataandJ.Baker.Thecompanywasestablishedin1945asalocomotive
manufacturingunitandlaterexpandeditsoperationstocommercialvehiclesectorin
1954afterformingajointventurewithDaimlerBenzAGofGermany.
2.TATA Indica
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 multi
utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a
stationwagon design based on the earlier 'TataMobile' (1989), a light commercial
vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility
vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of
India. Though the car was initially panned by auto-analysts, the car's excellent fuel
economy, powerful engine and aggressive marketing strategy made it one of the best
selling cars in the history of the Indian automobile industry. A newer version of the
car, named Indica V2, was a major improvement over the previous version and
quickly became a mass-favourite. A badge engineered version of the car was sold in
the United Kingdom as the Rover City Rover. Tata Motors also successfully exported
large quantities of the car to South Africa.The success of Indica in many ways marked
the rise of Tata Motors.
3. TATA Brads

DAEWOO ACQUISITION
With the success of Tata Indica, Tata Motors aimed to increase its presence
worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South
Korea.

HISPANO CARROCERA
In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors
became

acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company
giving it controlling rights of the company.

JAGUAR CARS AND LAND ROVER


After the acquisition of British Jaguar Land Rover (JLR) business, which also
includes the Rover, Daimler and Lanchester brand names Tata Motors became a major
player in the international automobile market.

Products of TATA Motors


[1] Passenger cars and utility vehicles

Tata Sumo Grande


Tata Safari
Indica Vista
Tata Sierra

Tata Estate

Tata Sumo/ Spacio

Tata Indica

Tata Indigo

Tata Indigo Marina

Tata Winger

Tata Nano

Tata Xenon XT

Tata Xover

[2] Concept vehicles

2000 Aria Roadster

2001 Aria Coupe

2002 Tata Indica

2002 Tata Indiva

2004 Tata Indigo Advent

2005 Tata Xover

2006 Tata Cliffrider

2007 Tata Elegant


2009 Tata Prima

[3] Commercial vehicles

TATA 1616 STARBUS


TATA MARCOPOLO BUSES
Tata Ace
Tata TL/ Telco line /207 DI Pickup Truck
Tata 407 Ex and Ex2
Tata 709 Ex
Tata 809 Ex and Ex2
Tata 909 Ex and Ex2
Tata 1109 (Intermediate truck)
Tata 1510/1512 (Medium bus)
Tata 1610/1616 (Heavy bus)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata Globus (Low Floor Bus)
Tata Marco polo Bus (Low Floor Bus)
Tata 3015 (Heavy truck)
Tata 3118 (Heavy truck) (8X2)
Tata 3516 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

[4] Military vehicles

Tata LSV (Light Specialist Vehicle)

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2
versions

Tata LPTA 713 TC (4x4)

Tata LPT 709 E

Tata SD 1015 TC (4x4)

Tata LPTA 1615 TC (4x4)

Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

Promoters

Government Policies

Changesintax,tarifforfiscalpoliciesandregulations: Impositionofany
additional taxes and levies designed to limit the use of automobiles could
adversely affect the demand for the Company's vehicles and the results of
operations.Changesincorporateandothertaxationpoliciesaswellaschanges
inexportandotherincentivesgivenbythevariousGovernmentscouldalso
adverselyaffecttheresultsofoperations.Forexample,theCompanybenefits
from excise duty exemptions for manufacturing facilities in the State of
Uttarakhand and other incentives in certain states of India either through
subsidiesorloansfromsuchstateswhereithasmanufacturingoperations.The
Government of India had proposed a comprehensive national goods and
servicestax,orGST,regimethatwillcombinetaxesandleviesbythecentral
and state Governments into one unified rate structure. While both the
Government of India and other state Governments of India have publicly
announced that all committed incentives will be protected following the
implementationoftheGST,giventhelimitedavailabilityofinformationinthe
public domain concerning the GST the Company is unable to provide any
assurance as to this and any of the aspect of tax regime following
implementation of the GST. The implementation of this rationalized tax

structure might be affected by any disagreement between certain state


Governments,whichcouldcreateuncertainty.Thetimelinesoftheproposed
transitionisuncertainatthispointoftime.
TheDirectTaxCodeBill2010,orDTC,proposestoreplacetheexisting
IncomeTaxAct,1961andotherdirecttaxlaws,withaviewtosimplifyand
rationalizethetaxprovisionsintooneunifiedcode.Thevariousproposals
includedinDTCbillaresubjecttoreviewbyIndianparliamentandassuch
impactifany,isnotquantifiableatthisstage.
Future
NEW DELHI: Homegrown auto major Tata Motors is working on a slew
of new products, including alternate fuels, hybrids and electric vehicles,
to be launched over seven years, according to Chairman Cyrus Mistry.
Addressing shareholders in the annual report for 2012-13, Mistry also
said the company's British arm Jaguar Land Rover plans to launch eight
new or refreshed products this year, besides exploring further
opportunities in other growing markets, including Brazil, India and Saudi
Arabia.
"The company is working on a slew of new products, with a plan running
up to 2020; this includes appropriate focus on alternate fuels, hybrids
and electric vehicles," he said.
Tata Motors had recently announced HORIZONEXT strategy, based on
intense product focus, world-class quality and manufacturing, enriched
customer purchase experience and a consistent, robust after-sales
service, to drive growth.
"With changes in the organisation structure, the company is determined
to improve its customer understanding to better meet market needs,
and deliver products swiftly through optimised operational processes,"
Mistry said.
Looking ahead, he admitted that there are challenges but said that "the
organisation is resolved to foster a culture of customer centricity and
innovation, so that the company's products and services consistently
exceed customer expectations".
On JLR, Mistry said:"Technical innovation and engineering excellence
have stood JLR in good stead for sustained, profitable growth and the
company plans to launch eight new or refreshed products this year."

Stressing that it is a healthy and vibrant company, he said JLR is


"strongly positioned across key global markets for future growth".
He said JLR has underlined its commitment to expanding its presence
in China, a long-term strategic market where it has partnered Chery
Automobile Company and is setting up a new plant to be built at
Changshu, in Jiangshu province.
"JLR also continues to explore further opportunities in other growing
markets, including Brazil, India and Saudi Arabia," he added.
Describing FY 13 as "a challenging one for Tata Motors", he said
"despite difficult economic conditions and increasing competition, the
company retained its market leadership in commercial vehicles, on the
back of new offerings and introduction of innovative technologies".
The mini truck Ace and Magic vehicles crossed the sales mark of one
million units, achieved in seven years since these products were first
introduced in the market, he said.
Tata Motors said that while it has enhanced market share in light
commercial vehicles, it has lost market share in the medium and heavy
commercial segment due to competitive pricing pressures.
"The sales performance of the company's passenger vehicles, however,
was significantly lower as compared to expectation; rapid changes in
customer preferences along with the de-regulation of diesel pricing both
took their toll," Mistry said.
On the small car Nano, the company said it is continuing with its drive to
identify newer markets for the car. Currently it is sold in Nepal and Sri
Lanka and is also evaluating other markets in South Asia.

Tataplansforglobal
expansionwithnew
modularplatform
A new car platform, designed to help Tata

improve its global car sales, is claimed to


leapfrog VW's current MBQ technology

Tata Motors plans on going global with its future


range of vehicles and has planned its portfolio
for the next six years, according to company MD
Karl Slym.
Although the company has more success with its
commercial vehicles, Tata wants to build a family of
world-class passenger cars, which will all be based on
a new, flexible, Volkswagen Group-style architecture
dubbed the Advanced Modular Platform (AMP).
Replacing todays ageing road car lineup (which
includes the Indica hatch, the model that became the
City Rover in 2003) is a priority for the maker, which
has been suffering in the recent sharp downturn in the
Indian market.
According to a report in the Australian media, the new
platform will leapfrog what the Volkswagen Group
has already achieved. Dr Tim Leverton, Tata Motors
head of research and development, told the Sydney
Morning Herald that VW had gone through six or
seven generations of products to get where it was
today, but that Tata would go directly to a very
interesting solution.
The AMP, he said, would not only be flexible in length,
but it would also be properly flexible in width. This
extra level of flexibility should enable the AMP
platform to underpin all sizes of cars from superminis
to crossovers.
Slym told the Indian press that the planning to send

Tata international began last year and that all of the


new cars in the development pipeline are designed for
sale globally.
Tata is likely to focus on fuel efficiency, connectivity
and innovation, he said.
Performance in the last 2 years

Reference
Capitaline
Investopedia
Money Control
Economic Times
Autocar.co.uk
Tatamotors.com
Indiaautoport.com