MOTORS

GROUP MEMBERS
MEMBERS ROLL NO.
Elaine Lobo 25
Chetan 26
Samiksha 27
Nishant 28
Cincy Joy 29
Aniket 30
Rizwan Mukadam 31
Ritesh Naik 32
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 INTRODUCTION
Ratan N Tata is the chairman of Tata Sons, the Tata
promoter company.

India’s largest automobile company with consolidated revenue of 92,519 cr. in

2009-2010.

Headquarters at Mumbai and Navi Mumbai.

Company’s manufacturing base in India is spread across many states.

Foundation of company’s growth over the last 50yrs is?

Working on 4 thrust areas-employability, education, health & environment

 Brand Finance, a UK-based consultancy firm, recently valued the Tata brand
at$11.4 billion and ranked it 57th among the world’s Top 100 3
brands.
 MISSION & VISION
 Mission:

To be a competitive value provider in

international business for Group companies and all
our partners.

 Vision:

"Best in the manner in which we operate , best in

the product we deliver, and best in our value system and
ethics." 4
PRODUCTS

TATA
Motors

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 PRODUCTS

TATA COMMERCIAL VEHICLES

• High Technology & Expertise

• High Engine Power Vehicles

• Launched 11 New Products

• 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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 COMPETITORS

• Maruti Suzuki
• Ashok Leyland

Commercial • Honda Motors

• VolvoVehicles
Motors
• Hyundai Motors
• Swaraz Mazda

• Mahindra Motors

Passenger Vehicle

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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

• 2010- Tata Motors acquired 80% stake in Italy-based design and engineering
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company Trilix for a consideration of €1.85 million. The acquisition is in line with
the company’s objective to enhance its styling/design capabilities to global
standards.[3]
 SALES & PROFIT
 Tata Motors September 2010 sales(including exports) is at 64,668 nos.
 Growth of 23% over 52,513 sold in September 2009.

 Domestic Sales of Tata Commercial & Passenger Vehicles for

September 2010 were 59,611 nos. a 20% growth rate over 49,650 nos.
sold is September last year.

Profit Figures as on 31st March 2010

 Total Incomes is Rs.37,103 cr

 Total expenditure is Rs.3,1992 cr

 Operating profit is Rs.4178 cr

 Net profit is Rs.2,2,40,ooo cr as on March 2010. 11

 FINANCE
Debt

• Posted High Debt in the year due to acquisition of Jaguar

• Company’s net debt increased by 75 Bn

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 MARKET SHARE
Passenger Car Market Share
Others

Toyota
1.5
5.5
6.8
Honda
Ta motors
ta Maruti
M
18.3 otor Suzuki
45.7
s

Hyundai
Motors
22.2

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RECESSION HITS TATA
MOTORS
 Profit fell form 34.1% to 3.47 billion rupees.
20% decline in the sales.

 Auto giant Tata motors lay off 400 more workers

 Tata Motors shut two commercial vehicle plants for six

days to avoid inventory build-up.

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HOW THEY FACED RECESSION
 Signed the deal of Jaguar & Land Rover in 2008.

 India's Tata Motors launches Nano, 'world's cheapest car'

 Decline in shares of TATA motors.

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 STRENGTHS
 Resources and capabilities

 Low price Vehicles

 Vast experience (steel and automobiles)

 Tata has a brand reputation in India.

 The business model (TBEM)

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 WEAKNESSES
 Distribution

 Not much brand value for Luxury Cars.

 Return on Investment is not up to the mark.

 It produces 3rd & 4th generation Cars. Not much Modernization.

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 OPPORTUNITIES
New markets

Exports

Acquisitions

 e.g. Jaguar and Land rover can give international

exposure.

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 THREATS

 Competitorsare spending more on R&D to

produce low priced & fuel efficient cars.

 Improvement in technology by Competitors.

 Rising prices of Steel , Aluminum & plastic.

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 STRATEGIES
Expanding globally (globalization strategy)
Acquiring other companies in different countries
Low frill strategy; “a low frill strategy combine a low price and low value added, low
perceived product/services benefits and a focus on a price sensitive market segment.
Maintain the cost of raw materials as lowest as possible.
Invest
a huge amount in research and development.
October 1,2010)Tata Motors launches QIP issue.

QIP is a CAPITAL RAISING TOOL,primarily used in India, whereby a listed company can

issue equity shares, fully and partly convertible debentures, or any securities other than

warrants which are convertible to equity shares to a Qualified Institutional Buyer (QIB).
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 CONCLUSION
 On the whole the TATA group is acquiring the different
strategy in the different markets, in the home country
Tata’s strategies are same as to cost leadership and
differentiations.
 Faced recession well without any effect to its Brand.

 Introducing appropriate technology & operation for

enhancing environment care
 With the foundation of its rich heritage, Tata Motors is
moving towards creating a bright future.

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 k Yo u
T h a n

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