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TATA MOTORS Company Background associate and subsidiary companies, operating in In 2005,Tata Motors also entered into

Company Background

associate and subsidiary companies, operating in

In 2005,Tata Motors also entered into a

Set up in 1945,Tata Motors is India's largest automobile company.With close to 4 million Tata vehicles plying in India, since the first roll out in 1954, it is the leader in commercial vehicles and the second largest in passenger vehicles. It is also the world's fifth largest medium and heavy truck

Europe. It is leveraging Europe’s experienced talent base in automobile research and development.

Memorandum of Understanding with Fiat, the first outputs of which have been distribution of Fiat-branded cars in India by Tata Motors, and

manufacturer and the second largest heavy bus


proposal to set up a joint venture in India to

manufacturer. In India, the company has manufacturing facilities in Pune (Maharashtra –

manufacture passenger cars, engines and transmissions for the Indian and overseas markets.

western India), Jamshedpur (Jharkhand – eastern India) and Lucknow (Uttar Pradesh – northern

Tata Motors in European Markets

India), and a nation-wide dealership, sales, services and spare parts network comprising over 2,000 touchpoints.The company employs over 22,000 people.Tata cars, buses and trucks are being marketed in several countries in Europe,Africa, the Middle East, South Asia, and South East Asia and in Australia.Tata Motors has research centres in India, the UK, and in its subsidiary and associate companies in South Korea and Spain.

Tata Motors began exports of its vehicles to Europe in 1992 with the Tata Telcoline 1- tonne pick-up truck.

At present,Tata Motors exports the Tata Safari Sports Utility Vehicle, the Tata pick-up and the Tata Indica range of passenger cars to Italy, Spain,Turkey, Portugal and Malta through its established distributors in these markets.The response has been encouraging. For example, in Italy,Tata Motors

In the financial year 2005-06, it earned net revenue of USD 4.65 billion, compared to USD 3.98 billion

Tata Motors links with Europe


already the 4th largest player in pick-ups, while

in 2004-05, a growth of 16.8 per cent. For 2005-06,


Turkey it is the third largest player.

the company’s exports rose to USD 496 million, as compared to USD 332 million in 2004-05, representing an increase of 49 per cent.

Today, around 50,000 Tata vehicles are already on European roads and bear testimony to Tata Motors' capabilities to address stringent country norms and sophisticated consumer needs in highly competitive markets.

Tata Motors’ is present in Europe in various dimensions.The company, on its own, markets its products in select European countries. It has

This European presence of Tata Motors enables the company to remain well ahead of Indian


regulations with regard to exhaust, emission and safety norms.

Tata Motors’ linkages in Europe through Associate Companies

In March 2005,Tata Motors took a 21% stake in Hispano Carrocera, one of the largest bus and coach bodybuilders of Europe with manufacturing facilities at Zaragoza and Casablanca (Morocco). The company has the option to acquire the remaining equity too.

This partnership provides both companies with the opportunity to use their complementary strengths to create high-class transport solutions for intra-city and intercity mass transportation in countries around the world. For example, soon after this partnership, Hispano Maghreb, the fully owned subsidiary of Hispano Carrocera, bagged its largest-ever single contract to supply 800 urban buses to Casablanca’s urban transport operator, M’Dina Bus.This large fleet renewal is part of Morocco’s largest project to modernise public transportation.

Hispano Carrocera,Tata Motors, and the company’s 100% subsidiary,Tata Daewoo Commercial Vehicle Company Ltd. (Tata Motors acquired it in 2004) are now collaborating in developing commercial vehicle platforms which can be used in several countries.

Tata Motors’ linkages in Europe through Subsidiary Companies

Similarly, in October 2005,Tata Technologies Ltd, a 100 per cent subsidiary of Tata Motors, acquired a 94.3 per cent stake in INC AT International Limited. INCAT is a supplier of engineering & design, product lifecycle management and product-centric IT services to the automotive, aerospace and durable goods industries.

INCAT operates in the EU through its subsidiaries all over Europe. Its main subsidiaries include INCAT GmbH, Germany, INCAT Limited, UK, and INCAT SAS, France.The company has other subsidiaries in the Netherlands and Ireland and

a global workforce of 3000.

In January 2006, INCAT acquired CEDIS Mechanical GmbH, Germany, a provider of automotive engineering and design services. This acquisition has provided the company with proven competency and CATIA support, and provided it with the means to expand its presence in Germany in particular and in Europe as a whole.

Tata Motors R&D in Europe

Deepening its engagement with the European R&D space, in September 2005,Tata Motors

set up the Tata Motors European Technical Centre,

a 100 per cent subsidiary, in the UK.

It is engaged in design engineering and development of products for the automotive industry.Working synergistically,TMETC provides the company with design engineering support and development services, complementing and strengthening the company’s skill sets and providing European standards of delivery to the company’s passenger vehicles.

Factors of Success

Strong Presence in the Marketplace Tata Motors is the only company in India with

a broadbased presence across the industry, in all

segments of the commercial vehicles market – heavy and medium commercial vehicles, light commercial vehicles, pick-ups, sub one-tonne mini-trucks - and key segments - compact, midsize car and utility vehicle segments - of the passenger vehicles market.

Unique Understanding of Customer Need With 50 years’ presence in the automotive business,Tata Motors understands customer needs and develops products that meet their needs.To consider a few examples, as early as 1980s, the company launched Light Commercial Vehicles, amidst Japanese competition, in which it today strongly leads. In the 1990s, anticipating the need for an affordable family car, it launched the now famous Tata Indica, which occupies a leading position among compact cars.This keen sense of the customer pulse led the company to launch in 2005, the Tata Ace, India’s first sub one tonne mini-truck, as a last-mile distribution vehicle once again creating a new market. Going forward,Tata Motors has anticipated that non-car owning families, at the bottom of the pyramid, will look for an extremely affordable vehicle, providing exceptional value and this small car will be launched in 2008.

Skill Base Developed Over the Last 40 Years Tata Motors is also very well-placed on technology capability.The company had set up its Engineering Research Centre as early as 1966.With 1400 scientists and engineers and state-of-the-art development, testing and validation facilities, it is this technology capability which has, allowed Tata Motors, over the decades, to offer indigenously- developed products.This strength has been accentuated, with the inclusion of TMETC,TDCV and Hispano Carrocera in the R&D network, besides several other specialist external agencies. The company no longer needs to develop every necessity itself.Today it just has to manage the process of product creation, drawing upon already available R&D and skills from different sources.

People Strength The company’s key strength is its people.The over 22,000 employees comprise a very broad talent base, with the required skills in every aspect of the industry.With increasing international initiatives by

the company, this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost.

Future Plans

Tata Motors’ goal is to enhance its leadership in India, and establish meaningful presence in select international markets.The company will achieve this by developing and marketing relevant products, on its existing platforms and new ones, which delight consumers in every market they are introduced in.