MADE BY:

ABHISHEK CHAWLA(2009002) ANKIT BANKA(2009012) MANISH ARORA(2009022) PURNIMA Y. TARKAR(2009032) SANGRAM DHUMAL(2009042) SOUMYA SHRIVASTAV(2009052)

Established in 1945 by Mr.JRD Tata. India's largest company in the automobile and commercial vehicle sector. Worlds fourth largest truck manufacturer Worlds second largest bus manufacturer Over 4 million Tata vehicles ply on Indian roads, since they first rolled out in 1954.

1954

Collaboration with Daimler Benz AG, West Germany, for manufacture of medium commercial vehicles.

1991

Launch of the 1st indigenous passenger car Tata Sierra.

1994

Launch of Tata Sumo - the multi utility vehicle.

1998

Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicle rolled out. Indica, India's first fully indigenous passenger car launched.

2001

Indica V2 and CNG Indica launched. Exits joint venture with Daimler Chrysler

2004

Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement. Tata Motors lists on the NYSE

2005

Branded buses and coaches - Starbus and Globus launched Launch of Tata ace and Tata Novus Tata Motors acquires 21% stake in Hispano Carrocera SA
Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully built buses & coaches Passenger Vehicle sales in India cross one-million mark

2006

2007

Fiat Group and Tata Motors announce establishment of Joint Venture in India Construction of Small Car plant at Singur, West Bengal, begins on January 21

2008

Acquires Jaguar Land Rover. Indica Vista, Xenon, Sumo Grande launched

2009

Tata Motors launches Nano - The People's Car Launch of premium luxury vehicles - Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover from Jaguar and Land Rover in India. FREELANDER 2 and Indigo Manza Launched.

VEHICLES

PASSENGERS

COMMERCIAL

TATA Motors: Commercial Vehicles

TATA MOTORS VS AUTO INDUSTRY YOY GROWTH

30 25 20 15 10 Growth 5 0 -5 -10 -15 -20

Industry

Tata Motors

Comm. Vehicles

Pass. Vehicles -0.521852577

Total -4.715127701

Comm. Vehicles -15.06410256

Pass. Vehicles -5.04587156

Total -10.94339623

2008-09 -17.49502982 2007-08

16.97674419

6.606397775

8.993576017

24.30278884

8.457711443

17.25663717

Collaborators Company Customers

Context

5C

Competition

2009

Current market size of domestic car industry Rs 403 Billion. Current market size of car and utility vehicles Rs 1111 Billion. Annual domestic demand for passenger cars and utility vehicles 1.55 million units.
CAGR of the industry 11.6 percent.

FIAT:- Tata Motors and Fiat India Private Limited announced the commencement of the new Tata-Fiat dealer network to sell both Tata and Fiat branded cars, along with service and sales of spare parts, in 11 cities across India on 03/06/2006.

MARCO POLO JV: 16-54 seaters world class luxury buses.Worlds largest bus manufacturing capacity with production capacity of 30,000 units per annum. THONBURI J.V: 3 products launched in same year.launch of xenon in thailand received a positive response.established distribution network of 33 dealership and additional 45 service network across the nation.

Segment Passenger Cars

Tata Indica Indigo

Market share 11.8% 20.8%

Competition Maruti Suzuki Ritz, Hyundai I10, Chevrolet Spark Mahindra Renault Logan, Maruti Suzuki Swift Dzire, Ford Ikon Expected: Maruti Suzuki Servo, Bajaj Nissan Renault Ford Fiesta, Chevrolet Aveo Hyundai Tucson, Toyota Qualis, Chevrolet Travera

Nano

Utility Vehicles Sumo Grande, Sumo, Xenon 18.7%

Heavy and medium commercial vehicles

Turbo truck, Ace, Winger, Magic

68.5%

Ashok Leyland buses, Swaraj Mazda Trucks

Sales Comparison- Passenger Cars(Compact Segment)

160,000
140,000 120,000 100,000
Sales

80,000 60,000 40,000 20,000 2006-07 2007-08 2008-09 Santro 150,036 121,163 91,478 Wagon R 118,395 132,727 134,768 Estillo/ZEN 34,326 50,635 32,694 Indica 144,690 135,642 111,253 Indigo 34,310 31,416 49,169

Sales Comparison - Passenger cars

25% 20%

15%

10%

5%

0%

2006-07
-5%

2007-08

2008-09

-10%

Hyundai Motors

Maruti Suzuki

Tata Motors

Sales Comparison - Commercial cars

40% 30% 20% 10%

0%

2006-07
-10%

2007-08

2008-09

-20%
-30% -40%

Ashok Leyland

Mahindra & Mahindra

Tata Motors Ltd

Compact Cars
1% 19% 22%

Mid-Size Cars
15%

Hyundai Motors India Ltd Maruti Udyog Ltd Tata Motors Ltd
53%

15%

Hyundai Motors India Ltd Maruti Udyog Ltd Tata Motors Ltd

58%

17%

Executive Segment
0% 7%

34%

Hyundai Motors India Ltd Skoda Auto India Pvt Ltd Toyota Kirloskar Motor Ltd
59%

Tata Motors Ltd

Executive Segment Sales Growth

25% 20% 15% 10% 5% 0% 2005-06 -5% -10% -15% -20% Executive segment 2006-07 2007-08 2008-09

Exports Growth of passenger vehicles

120% 100% 80% 60% 40% 20% 0%

-20%
-40% -60% -80% -100%

2005-06

2006-07

2007-08

2008-09

Total

Honda SIEL

Hyundai Motors

Maruti Suzuki

 India = 4th largest car market in Asia Cars

Vehicle financing and fuel retailing

Multiutility Vehicles
Best vehicle for long drives

Heavy & Commercial Vehicles

Governments stimulus packages

Truckers eligible for vehicle financing

Before the new Euro-4 emission norms come into

effect in April 2010.

250000

200000

150000

100000

50000

2005

2006

2007

2008

Cars Heavy & Medium Commercial Vehicles Light Commercial Vehicles Multiutility Vehicles

STRENGTHS

Well-known brand with good reputation Planned and smart international strategy Smart approach in responding to the market demand. Alliances with key players Fast product development ability

WEAKNESS

Low penetration in the passenger car segment. Lack of experience in certain new sectors. Weak revenue per employee indicates its weaker productivity and operational inefficiency.

 Launch of Tata Nano Emerging markets high demand for passengers OPPORUNITIES cars at low costs Acquision of jaguar and land rover

THREATS

Downturn of the world economy High level of competition Sustainability and environmentalism Rising oil ,steel and Aluminium prices Competition from overseas companies for the emerging Indian luxury segments .

Indica Heavy & Medium Commercial Vehicles Indigo Utility Vehicles

 Political

Economic

P
S
Social

E
T
Technological

Auto Policy Era -2002

Government passed an auto policy to remove Quantitative Restrictions for foreign players. Auto Policy put restrictions like minimum investment, compulsory indigenisation and export commitment.

Revision on insistence of WTO Removal of the ruling on indigenisation. Automatic approval of foreign equity 100 % allowed. Rebate and deduction of taxes and duties Rebate on excise duty for spending 1% of gross turover on R&D.

Increase in Foreign Direct Investment Lucrative schemes included.

1. Tax Breaks 2. Concessional Duty on import of machinery. 3. High Custom duty on the import of used vehicles.

Results
Increased Competition for indigenous players like Tata Motors, Maruti Suzuki and Hindustan Motors Ltd.

Favorable
Softening interest ratesDrop of 2 % in February 2009 Faster processing of loans by Tata Motor Finance and PSUs Fall in excise duty . Small cars 8% Large Cars 20%

Adverse
Weak consumer sentiments. Higher rate of interest from July 2008 to Jan 2009. Festive season failed to increase sales

Tata Motors Finance June 2003.

Merged with Tata Motors in April 2005 150 centers all across India. AIM- Provide easy Finance to Tata Motors Customers. A window service between Customers and Dealers. Speedy Finance 1 to 3 working days. Target Customers- Individuals and fleet operators and institutions.

Used Car Industry Growth

Present used car sales is 1.2 times the sales of new car industry. Growing at a rate of 14% YOY. Major Players Tata Motors (Assured) Jan-2009,

Maruti (TrueValue), Hyundai (Advantage). Latest Entry GM (Chevrolet OK)

Sales (in Thousands)

1500.00 1000.00 500.00 0.00

CAGR 21%

A4-A6 A3 A2 A1

2004-05 Year

2008-09

More urbanization : increasing growth rate of middle class.

Changing consumer perception: Vehicle seen as a necessity

Growing spending power

Household income rising
Pay increase in public and private sectors

Hybrid Euro emissions

Dicor
Electric car

Nasscom report- Total R &D market of $144 billion. India has invested $3to $5 billion. Expected investment - $16 billion in next 2 to 3 years. The $6 billion Mahindra & Mahindra group has opened new $116 million automobile design and development facility in June 09 Outsourcing to India will touch over $ 50 billion US$ 25 million investment -Hyundai in R&D Hyderabad

Maruti to invest US $217 million in Haryana

Ratio Analysis
Year Current Ratio Debt Equity Ratio Interest Coverage Ratio Price Earnings ratio Operating Margin

Mahindra & Mahindra Maruti Suzuki India Ltd. Ltd

Tata Motors Ltd

Mar 09 Mar 08 Mar 07 Mar 09 Mar 08 Mar 07 Mar 09 Mar 08 Mar 07

2.72

3.17

3.27

1.79

1.28

1.90

1.34

1.70

2.11

1.82

1.68

1.68

0.08

0.11

0.10

5.89

1.33

0.95

4.49

5.31

7.18 45.44 50.92 65.15 1.17

5.24

9.20

7.46

10.69 12.16 20.72 13.86 15.17 -2.65 11.33 12.77

15.60

16.98 18.08 11.94 17.62 17.75 3.62 13.50 13.35

Vision - The Transformation Plan

2009 - Stabilise
Stabilise, drive cost, launch new product and initiate transformation.

2013 Complete transformation

Sustainable Growth 2014 Onwards

Deliver key growth market and brand portfolio extension opportunities Optimise the manufacturing footprint and supply chain for the business Full global business synergies with TML Strong technology strategy for low carbon world

2010-12 - Transform
Drive transformation to profitable business - simpler, more flexible with a lower cost base and lower breakeven
Create the cash to invest

Achieve Potential

Stabilise & Transform

Achieve cash self sufficiency AND generate profits to invest

Achieve competitive potential

Sustained and steady growth

2009 to 2012

2013

2014 onwards

22

60% 50% 40% 30% 20% 10% 0% -10%

Maruti ltd tata motors

Sales projection (by volume)

2006-07 20% 19%

2007-08 13% -7%

2008-09 3% -4%

2009-10 13% 56%

2010-11 16% 14%

2011-12 16% 14%

Passenger car sales growth by value

30% 25% 20% 15% 10% 5% 0% -5%
Tata motors Maruti Suzuki

2006-07 10% 17%

2007-08 18% 22%

2008-09 0% 10%

2009-10 27% 14%

2010-11 5% 17%

2011-12 2% 17%

Tata Motors Ltd Commercial vehicle growth by volume

40% 30% 20% 10% 0% -10% -20% -30% Tata Motors Ltd

2006-07 36%

2007-08 2%

2008-09 -23%

2009-10 25%

2010-11 20%

2011-12 20%

Target
Global Markets through exports, making India as a

manufacturing hub.
Launch of Executive Segment Cars in India.

Extensive Growth opportunity in used car business Penetration in this business should be increased. Investment in R&D to be increased. Current expenditure is 2% of operating margin.

https://www.crisilresearch.com/ResearchProWeb/control/specificindustrysubscri ption?industryId=7&usagestring=IndustrySub:Tree&frompage=indgeneralreport &searchCriteria=13&id=60890 http://www.financialexpress.com/news/gm-to-launch-used-car-business-inindia-this-month/408800/ http://www.business-standard.com/india/news/tata-motors-may-drive-intoused-car-market/280290/ http://www.tatamotors.com/our_world/press_releases.php?ID=141&action=Pull http://www.thehindubusinessline.com/2009/01/22/stories/2009012250350300.ht m

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