Project on TATA Motors

100

PROJECT REPORTON

COMPARE THE STANDING TATA MOTORSvis-á-vis THE INDUSTRY

&CUSTOMER SATISFACTION SURVEY

TATA Motors Ltd.

SUBMITTED TO:- SUBMITTED BY:-

LOVELY PROFESSIONAL UNIVERSITY LOVELY INSTITUTE OF MANAGEMENT (LIM)

ARUN GULERIA [email protected]

100

DECLARATION

I ARUN KUMAR GULERIA here by declare that the project report

entitled “COMPARE THE STANDING TATA MOTORS vis-á-vis THE INDUSTRY &

CUSTOMER SATISFACTION SURVEY” under guidance of Miss. Sukhwinder

Arora submitted for the requirement of a degree programme of

LOVELY PROFESSIONAL UNIVERSITY is my original work.

Any literature, data or works done by others and cited within

this dissertation has been given due acknowledgement and listed in

the reference section.

Signature :

Date :

Place : Jalandhar


100

ACKNOWLEDGEMENT

In order to make my project I acknowledge a special thanks to all those people without

whose supports it would not be possible for me to complete for me to complete my report.

First of all I really thankful to my Lovely Professional University because of them I

could achieve the target. I express my sincere thanks to my project guide Miss. Sukhwinder

Arora who had guide to me throughout my project.

I would also thankful to the Satluj Motors (TATA MOTORS Dealership) for giving me

this opportunity to work on project in Mandi (H.P). I convey my heart full thanks to the

Mr. Bhopal Singh Jamwal (Admin. Manager) and the staff members of Satluj Motors, with

their help and corporation.

Also I would like to express my inner feeling for all the people for co-operating and

helping me throughout the project.

Last but not the least I am thankful to my parents and friends who have provided me with

their constant support throughout this project.

Arun Kumar Guleria


100

PREFACEThe professional training is the internal part of a M.B.A program. It helps the student

understand practical aspects of Business Management in a better way as a part of my M.B.A.

program at Lovely Professional University, Jalandhar. I was supposed to work the

organization.

‘Finance Management is the systematic and objective identification, collection, analysis,

dissemination, and use of information for the purpose of improving decision making related to

identification and solution of problems and opportunity”

Perception is the process, by which an individual selects, organizes and interprets

information inputs to create a meaningful picture of the world around as”

To be a Master of Business Administration student is a matter of pride because we are in

a field, which help us to develop from a normal human being into a disciplined, and dedicated

professional. One has to be a good learner to sharper knowledge in the particular field to achieve

and attain the desired goals and heights. I analysis the financial position of TATA Motors and

conducted a financial analysis of two of its competitors – Mahindra & Mahindra and Maruti

Udyog. To compare the standing TATA Motors vis-á-vis the industry. I used Balance Sheet,

Profit & Loss Account, Cash Flow and Fund Flow Statement, and Ratio Analysis.

And I also conducted Customer Satisfaction Survey of TATA Motors in the Mandi

District of Himachal Pradesh. I used research questionnaires as the research and data collection

tools. The responses were collected from 100 respondents from various areas of Mandi.

I had learned lot during my project on compare the standing TATA Motors vis-á-vis the

industry & customer satisfaction survey of TATA Motors; I hope this will be helpful to find out

financial standing of TATA Motors in automobile industry and satisfaction of consumer in

Mandi city.


100

INDEXS.No. PARTICULAR Page No.

1. Declaration (i)

2. Acknowledgement (ii)

3. Preface (iii)

4. Executive Summary 7

5. Introduction 10

6. Literature Review:6.1 Tata Motors July Sales At 48,054 Nos.6.2 First Quarter Stand-Alone Net Revenue Rs.6405 Crores, Pat Grows 58% To Rs.514 Crores6.3 Delivers First Tata Nano In The Country In

Mumbai6.4 June 2009 Domestic Sales At 43,244 Nos6.5 First Jaguar Land Rover Showroom Opens In

India6.6 Tata Motors To Introduce Air Car6.7 Consolidated Revenue In 2008-09 Rs. 70938.85

Crores, Loss After Tax Rs. 2505.25 Crores6.8 Effect Of Inflation On Car

Market

1415

16

1718

1920

21

24

7. Profile Of Tata Group:7.1 TATA Group Companies

2732

8. Profile Of Tata Motors Limited:8.1 Industry Overview8.2 History Of Tata Motors8.3 Important Developments8.4 Global Operations8.5 Future Challenges8.6 Milestones

8.7 Awards

3537393948515257

9. Products Of Tata Motors: 9.1 Passenger cars and utility vehicles 9.2 Concept vehicles

585859


100

9.3 Commercial vehicles 60

10. Marketing Strategies:10.1 Launch Of Tata Nano10.2 Modification In Tata Sumo 10.3 New Version Of Indigo ,Indigo Dicor 10.4 Tapping Of Rural Markets

6262697172

11. SWOT Analysis - Tata Motors Limited 73

12. Financial Analysis:12.1 Financial Overview12.2 Capital Structure12.3 Weighted Average Cost Of Capital12.4 Balance Analysis12.5 Financial Analysis Of Tata Motors

767778798184

13. Global Automobile Industry 87

14. Indian Automotive Players: Overview Of The Players In the Indian Industry 88

15. To Compare The Standing Tata Motors Vis- A Vis The Industry:15.1 Liquidity Position 15.2 Solvency Position15.3 Profit Margin Ratio15.4 Market Position

90959799101

16. Result 102

17. Customer Satisfaction Survey 103

18. Analysis Questionnaire 107

19. Conclusion 123

20. Suggestion 125

21. Questionnaire 126

22. Annexure:22.1 Balance Sheet22.2 Profit And Loss Account22.3 Cash Flow Statement

129130131132

23. Bibliography 133

24. Glossary of Terms 136

EXECUTIVE SUMMARY


100

The project on COMPARE THE STANDING TATA MOTORS vis-á-vis THE

INDUSTRY & CUSTOMER SATISFACTION SURVEY based on financial

performance and on customer survey. The main objectives of the project are:

Financial performance in automobile industry

Market performance

Market position.

Economic and the industry environment

Cost saving initiatives

Awareness regarding the facilities provided by Tata Motors.

Overall opinion about Tata Motors.

Satisfaction amongst the customers of Tata Motors

For this project Financial Statements was analysis and customer research was carried out at

various area of Mandi District of Himachal Pradesh. I learnt analysis financial statement in to

find different aspects for compare the standing vis-á-vis industry and customer’s perception

about TATA Motors.

THE REPORTS IS DIVIDED INTO VARIOUS SECTIONS:1. Company Overview:

This part describes the company profile. This part recognizes the achievements and

rewards the company has achieved, it also gives little insights into what company offers

to the Corporate and the Consumers. This section also describes the kind of technology

used.

2. Company Profile:

This section gives the information about the company. It includes the company history

which depicts the company from the period of foundation. This section also products of

the company producing by the company.

3. Analysis of Financial:


100

Financial statements of the company over last few years are analysis in this section and

financial performance is output.

4. Competitors of company:

The company’s competitors are finding and study the business during the financial years.

5. Comparison of company’s financial statements with competitors:

Comparison of company’s Balance Sheet, Profit & Loss Account and Fund and Cash

Flow Statement with their competitor to find the standing of company in automobile

industry.

FINDINGS:

A detailed analysis of the company shows that the company has had a strong fundamental

as well as a strong market performance over the years. Given the economic and the industry

environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary.

While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will

improve margins.

On an average more than 73% people feel that the prices are affordable whereas 12% do

not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with

the discounts offered. 20% said that the test drives are not offered and 15% said that post sales

follow ups are not done regularly whereas 85% said that they were done regularly but people feel

that it is the people’s car as it is satisfactory on all other parameters: knowledgeable sales persons

, employees spent enough time before and during sales, display of merchandise is attractive,

availability of product, variety of merchandize, vehicle in good condition, prices are affordable,

attractive discounts are offered, décor of the waiting area is pleasing, responds to complaints

quickly, service at TATA Motors service station is excellent, careful with personal information

and is value for money . The overall opinion about TATA Motors is very good.


100

At the end it is submitted to “Lovely Professional University”


100

INTRODUCTION


100

India is an emerging country with huge potential. The domestic economy is now growing

at around 9-10% per annum and India’s importance in global terms is being reinforced by

rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and

overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a

surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark.

The automotive industry is at the center of India’s new global dynamic. The domestic

market expanding rapidly as incomes rise and consumer credit becomes more widely available.

Manufacturer’s product lines are being continually expanded, as is the local automotive

manufacturing base. Expectation are high that India can develop as a global hub for vehicle

manufacturers and as an outsourcing center that offers the global automotive industry solution

high up the automotive value chain.

India eyes 25 million automotive jobs.

India's GDP is set to double over the next decade

In percentage terms, the automotive industry's contribution should

also double.

In dollar terms, the sector's contribution is set to quadruple to some

$145bn

The automobile industry in India accounts for a business volume of $45 billion and has

the potential to grow much faster both through Indian as well as international manufacturers who

have established huge facilities in the country

With the world’s second largest and fastest-growing population, there is no denying India’s

potential in both economic and population terms and the effect it will have on the auto industry

in the years to come. The country is already off to a good start, with a well-developed

components industry and a production level of 1 million four-wheeled vehicles a year, plus a

further 5 million two- and three-wheelers.


100

The implications, market drivers and scope of a future massive Indian vehicle market

are covered in the India Strategic Market Profile, a brand-new forecast of Indian automotive and

related activity to 2020. Based on Max Pemberton's unique relational long-term forecasting

model, it forecasts car and CV sales, demographics, materials usage, auto industry employment,

and explains their inter- year of healthy growth in auto industry.

INDUSTRY GROWTH:

Future of the Automobile in the Economy:


100

US based consultancy, keystone predicts that India will become world’s third largest automobile market by 2030. Overall size expected to exceed 20 million with compounded annual growth rate of over 12%.

INDIA THEN & NOW

1983

Number of brands 2

Number of models 2

2008

Number of brands 30

Number of models 70


100

LITERATURE REVIEW


100

Released on: 3rd August, 2009

Tata Motors July sales at 48,054 nos., growth of 18%M&HCV sales record year-on-year growth after almost a year

- Ashish Garg

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48,054 vehicles, a growth of 18% over 40,729 vehicles sold in July 2008. The company’s domestic sales of Tata commercial and passenger vehicles for July 2009 were 45,599 nos., a 23% growth over 37,033 nos. sold in July last year.

Cumulative sales (including exports) for the company for the fiscal at 171,168 nos., was lower by 1%, compared to 172,462 nos. sold last year.

Commercial VehiclesThe company’s sales of commercial vehicles in July 2009 in the domestic market were 28,408 nos., a 27% growth compared to 22,381 vehicles sold in July last year. LCV sales were 17,750 nos., a growth of 44% over July last year. M&HCV sales stood at 10,658 nos. turning positive after almost a year with a growth of 6% over July last year and the highest since September 2008Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100,464 nos., a growth of 7% over last year. Cumulative LCV sales were 63,180 nos., a growth of 32% over last year, while M&HCV sales stood at 37,284 nos. was lower by 19% over last year.

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19,881 nos. (17,191 Tata + 2,690 Fiat) in the domestic market in July 2009, a 32%

increase compared to 15,064 nos. (14,652 Tata + 412 Fiat) in July last year. Sales of Tata cars, at 14,537 nos., grew by 21% over July 2008. Dispatches of the Tata Nano began during the month, and the sales were 2,475 nos. The Indica range sales were 8,563 nos., a growth of 14% over July last year. The Indigo range recorded sales of 3,499 nos., lower by 22% over July last year. The UV/SUV range of Sumo/Safari accounted for sales of 2,638 nos., flat compared to July last year.

The company began the sale and deliveries of the Jaguar and Land Rover range through the brands’ flagship store in Mumbai. The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent.

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70,572 nos. (63,028 Tata + 7,544 Fiat), against 67,559 nos. (65,746 Tata + 1,813 Fiat) last year, a growth of 4%. Nano sales were 2,475 nos. Cumulative sales of the Indica range at 37,412 nos., reported a growth of 13%. Cumulative sales of the Indigo family were 12,422 nos., lower by 29%. Cumulative sales of the Sumo/Safari range were 10,690 nos., lower by 29%. ExportsThe Company’s sales from exports at 2,455 vehicles in July 2009 were lower by 34% compared to 3,696 vehicles in July last year. The cumulative sales from exports for the fiscal at 7,676 nos. were lower by 40% over 12,855 nos. in the same period last year.


100

Released on: 27th July, 2009

Tata Motors First Quarter Stand-alone net revenue Rs.6405 Crores, PAT grows 58% to Rs.514 crores

- R. S. Sardha

Tata Motors today reported revenues (net of excise) of Rs.6404.63 crores on a stand-alone basis for the quarter ended June 30, 2009, of the financial year 2009-10, a decline of 7.6% compared to Rs.6928.44 crores in the corresponding quarter previous year.

The company’s continued focus on cost efficiencies, coupled with reduction of raw material prices, inventory reduction and improvement in sales realisation, yielded considerable benefits resulting in the operating margin to 11.4% (from 7.1% in the previous year), with operating profits at Rs.728.00 crores, an increase of 47.9% as compared to the corresponding period of the previous year.

Profit before Tax for the quarter grew by 58.8% to Rs.548.04 crores (Q1 2008-09: Rs.345.09 crores) and Profit after Tax was Rs.513.76 crores (Q1 2008-09: Rs.326.11 crores), an increase of 57.5%. The interest cost (net) at Rs.253.45 crores for the quarter increased by 125.6% due to increased debt taken by the company during the previous year to support its product programmes, investments and working capital requirements and depreciation at Rs.229.12 crores was higher by 26.7% reflecting the increased investments in new products and supporting capabilities. For the quarter ended June 30, 2009, there was an exceptional notional foreign exchange valuation loss of Rs.5.54 crores (previous year loss of Rs.161.59 crores).

Improvement in liquidity, increased reach across the country and introduction of new products and variants improved the company’s sales, except in the case of the heavy truck segment. The heavy truck segment is recovering, albeit slowly, in response to infrastructure development, Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives.

The company’s domestic sales volume at 122,120 vehicles recorded a marginal decrease of 1.4% over the corresponding quarter of the previous year, whilst the exports at 5220 vehicles continued to be severely impacted (negative 43%) in the wake of continuing tumultuous global environment resulting in total sales volume at 127,340 vehicles, a decline of 4.3% as compared to the corresponding quarter of the previous year. The company gained market share in commercial vehicles to 67.4% during the quarter compared with 61% in the corresponding quarter of previous year on the back of a marginal 1.1% growth in domestic sales to 72,216 units. Tata passenger vehicles declined by 10% in the domestic market to 45,846 units but have been growing sequentially every month of the quarter breaking into positive growth in June. The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 12.5%, and for the period being at 11.3%. Along with Fiat, the company has a joint market share of 12.3% in the industry.


100

The company continues to upgrade its resources to leverage emerging opportunities. In commercial vehicles, the company unveiled its new range of world standard trucks in May 2009, comprising multi-axle trucks, tractor-trailers, tippers, mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time. An all-new Starbus range of buses has also been introduced. A new mileage enhancing automatic stop-start technology, developed in-house, has been introduced in the Ace mini truck. Tata Motors has received a majority of the orders for buses released by different State Governments under the JNNURM.

In passenger vehicles, the company has completed the process of allotment of Tata Nanos, following the car’s launch in March 2009. Deliveries to the allottees have since begun. The company also opened the first Jaguar Land Rover showroom in India at Mumbai. Along with the Fiat Linea, Fiat 500 and the Palio, the company has commenced the distribution of the Fiat Grande Punto in June 2009.

The audited stand-alone financial results for the quarter ended June 30, 2009, are enclosed. The consolidated financial results for the 1st quarter of Financial Year would be voluntarily disclosed separately in due course.

__________________________________________________________________________________________________

Released on: 17th July, 2009TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI

- Rojar R. Karm

Tata Motors is pleased to announce that Mr. Ashok Raghunath Vichare of Mumbai has become the first customer in India of the Tata Nano. Mr. Vichare received his choice, the Tata Nano LX (Lunar Silver), at the hands of the Chairman of Tata Sons and Tata Motors, Mr. Ratan N. Tata, at the company’s dealership, Concorde Motors, today.

Speaking on the occasion, Mr. Tata said, “I hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also those who currently own cars but want a modern, contemporary,

emission-friendly city car.”

Along with Mr. Vichare, two other customers, Mr. Ashish Balakrishnan (Tata Nano LX – Sunshine Yellow) and Kores India Limited (Tata Nano LX – Lunar Silver), also received their cars today.

As planned, Tata Motors has commenced deliveries of the Tata Nano this month to different towns and cities of the country. Dispatches to dealerships have begun from the Pantnagar plant, where the car is being produced, in accordance with schedules informed to customers.


100

Released on: 1st July, 2009

TATA Motors’s June 2009 DOMESTIC SALES at 43,244 nos.- G. Lata Sure

Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles were 45,399 vehicles, a decline of 4% over 47,245 vehicles sold in June last year. The company’s domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43,244 nos., a 1% decline over 43,814 nos. sold in June last year.

Cumulative sales (including exports) for the company for the quarter at 123,113 nos., declined by 7%, compared to 131,733 nos. sold last year.

Commercial VehiclesThe Company’s sales of commercial vehicles in June 2009 in the domestic market were 26,205 nos., a 2% decline compared to 26,797 vehicles sold in June last year. LCV sales were 16,256 nos., a growth of 17% over June 2008, while M&HCV sales stood at 9,949 nos., a decline of 23% over June 2008 but an increase of 15% over May 2009.

Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72,056 nos., a growth of 1% over last year. Cumulative M&HCV sales stood at 26,626 nos., a decline of 26% over last year, while LCV sales for the quarter were 45,430 nos., a growth of 27% over last year.

Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19,513 nos. (17,039 Tata + 2,474 Fiat) in the

domestic market in June 2009, an 11% increase compared to 17,567 nos. (17,017 Tata + 550 Fiat) in June 2008, and an increase of 17.8% over 16,563 nos. (15,388 Tata + 1,175 Fiat) of May 2009. The Indica range grew for the fifth consecutive month at sales of 10,210 nos. -- a growth of 19% over June 2008. The Indigo family recorded sales of 3,522 nos., a 26% decline over June 2008, but a growth of 24.4% over 2,832 nos. of May 2009. The Sumo/Safari range accounted for sales of 3,307 nos., a decline of 11% compared to June 2008, but a growth of 29.7% over 2,550 nos. of May 2009.

The company launched the Jaguar and Land Rover range in the last week of June in Mumbai.

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the quarter were 50,691 nos. (45,837 Tata + 4,854 Fiat), against 52,495 nos. (51,094 Tata + 1,401 Fiat) in the same period last year. Cumulative sales of the Indica range at 28,849 nos., reported a growth of 12%. Cumulative sales of the Indigo family were 8,923 nos., a 32% decline over the same period last year. Cumulative sales of the Sumo/Safari range were 8,065 nos., a decline of 35%.

ExportsThe Company’s sales from exports at 2,155 vehicles in June 2009 declined by 37% compared to 3,431 vehicles in June 2008. The cumulative sales from exports for the fiscal at 5,220 nos. declined by 43% over 9,159 nos. in the same period last year.


100

Released on: 28th June, 2009

FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA

Jaguar Land Rover's official entry to the fast-growing Indian car market was marked today by the opening of a flagship showroom facility at Ceejay House in Mumbai by Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors.

Jaguar and Land Rover's award-winning vehicles are well known around the world. Jaguar has become one of the world's leading producers of beautiful fast cars. Land Rover produces the world’s most versatile all-terrain vehicles, combining refined luxury with a true breadth of capability.

The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range

Rover Sport and Range Rover. Further details, including specifications, are available on the new Jaguar India website (www.jaguar.in) and Land Rover India website

(www.landrover.in).

Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-class Ceejay House facility in Worli, Mumbai, will offer a wide range of both Jaguar and Land Rover vehicles, with a dedicated showroom section for each brand. It aims to establish a benchmark

experience in luxury car sales in India, with plans to develop the dealer network throughout 2009 and 2010.

Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said: "We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands, accompanied by a parts and service network. We hope that they will delight customers in India just as they have done in markets the

world over."

Mr. David Smith, CEO of Jaguar Land Rover, said: "Jaguar Land Rover is delighted to have officially opened our first showroom in India. It is an exciting time to be entering the Indian market, a country with increasing affluence and an economy which is still growing. We believe that the Indian market holds significant growth potential in the long term, and we hope to tap the demand for premium vehicles from discerning customers."


http://www.jaguar.in/

http://www.landrover.in/

100

Released on: July 7, 2009

TATA MOTORS TO INTRODUCE AIR CAR – Ben MaGreow

Tata Motors is taking giant strides and making history for itself. First the Landrover-Jaguar deal, then the world's cheapest car and now it is also set to introduce the car that runs on air, compressed air to be specific.

With fuel prices touching nearly $150 per barrel, it is about time we heard some breakthrough!India's largest automaker Tata Motors is set to start producing the world's first commercial air-powered vehicle. The Air Car, developed by ex-Formula One engineer Guy Nègre for Luxembourg-based MDI, uses compressed air, as opposed to the gas-and-oxygen explosions of internal-combustion models, to push its engine's pistons. Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009.

The Air Car, called the MiniCAT could cost around Rs. 3,50,000 ($ 8177) in India and would have a range of around 300 km between refuels.

The cost of a refill would be about Rs. 85 ($ 2). Tata motors also plans to launch the world's cheapest car, Tata Nano priced famously at One lakh rupees(£1200) by October.

The MiniCAT which is a simple, light urban car, with a tubular chassis that is glued not

welded and a body of fiberglass powered by compressed air. Microcontrollers are used in every device in the car, so one tiny radio transmitter sends instructions to the lights, indicators etc. There are no keys - just an access card which can be read by the car from your pocket.

According to the designers, it costs less than 50 rupees per 100Km (about a tenth that of a petrol car). Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hoursof driving), a factor which makes a perfect choice in cities where the 80% of motorists drive at less than 60Km. The car has a top speed of 105 kmph. Refilling the car will, once the market develops, take place at adapted petrol stations to administer compressed air. In two or three minutes, and at a cost of approximately 100 rupees, the car will be ready to go another 200-300 kilometers.

As a viable alternative, the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours. Due to the absence of combustion and, consequently, of residues, changing the oil (1 litre of vegetable oil) is necessary only every 50,000Km.] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero, which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power.


100

Released on: 26th June, 2009

Consolidated Revenue in 2008-09 Rs. 70938.85 crores, Loss after Tax Rs. 2505.25 crores

Tata Motors today reported consolidated gross revenue of Rs.74151.21 crores in 2008-09. The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008. In 2007-08, the consolidated gross revenue was Rs.40340.79 crores.

The consolidated revenues (net of excise) in 2008-09 amounted to Rs.70938.85 Crores (2007-08: Rs. 35660.07 crores). On a consolidated basis, the company reported a Loss after Tax in 2008-09 of Rs. 2505.25 crores; in 2007-08, the company had reported a Profit after Tax of Rs. 2167.70 crores.

Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs.(56.88) (2007-08: Profit of Rs. 56.24) for its consolidated operations.

Tata Motors has already reported on May 29, 2009, that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs.25660.79 crores, and Profit after Tax for the year was Rs.1001.26 crores.

Business Highlights:

Jaguar Land Rover: Jaguar Land Rover made a profit in 2007 and continued to do so

in the first half of 2008. However, the global meltdown, especially after July 2008 with vehicle financing and demands drying up, impacted the auto industry worldwide, including Jaguar Land Rover. In 2008 therefore, Land Rover sales fell considerably. However, Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan.

The company has actively responded to this changed situation by taking a number of urgent and long term measures. These include cutting costs drastically and working on a plan of substantial cost reduction, aligning production with demand and tight control over cash flows. In addition, the company has introduced successfully new variants on both Jaguar and Land Rover brands, and is to unveil the all new XJ sedan shortly.

TDCV: While market illiquidity and high interest rates in South Korea impacted the company’s domestic performance, it strongly grew exports. The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments, as also product development initiatives.


100

Telcon: The company has launched several new products, but was impacted by the credit squeeze in the third quarter of the year. It expects demand revival supported by infrastructure spend in the country.

HVAL & HVTL: Though impacted by lower volumes on the back of decline in medium and heavy trucks, the two companies significantly reduced variable costs to counter the slowdown. Their plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad.TMFL: In line with Tata Motors’ sales in 2008-09, there was a decline in disbursals. It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage.

Tata Technologies: The company has consolidated position among the top three solutions and software

provider of leading Engineering and PLM products in all major geographies winning several projects, and has expanded presence in aerospace design and aero structures. While the year ahead is challenging, it has developed appropriate business structures and processes to strengthen relationship with strategic clients.


100

Released on: 29th May, 2009

Tata Motors Net Revenue in 2008-09 lower at Rs.25660.79 crores,and Net Profit lower at Rs.1001.26 crores, due to market upheaval

Tata Motors today reported gross revenue (stand-alone) of Rs.28599.27 crores (2007-08: Rs.33093.93 crores) in 2008-09, a year marked by severe demand contraction in the automobile industry.

Revenues (net of excise) for the year were Rs. 25660.79 crores compared to Rs.28739.41 crores in 2007-08, a decline of 10.7%. The Profit before Tax was Rs.1013.76 crores compared to Rs.2576.47 crores in 2007-08, a decline of 60.7%. The Profit after Tax for the year was Rs.1001.26 crores compared to Rs.2028.92 crores, a decline of 50.7%.

The demand contraction was triggered by high interest rates and unavailability of finance throughout the year; particularly in the October-December quarter post the global financial market upheavals. The impact on heavy commercial vehicles was more severe, abetted by reduction in freight movement in different segments and customer concerns on economic conditions. Small commercial vehicles, like the Tata Ace and the Tata Magic, have continued to improve penetration.

Stimulus packages from the Government in

the last quarter of the year have to an extent helped regenerate overall sales, as in the automobile industry, but growth is yet to revive to earlier levels.

The fall in volumes combined with peak input prices and high interest rates brought margins under pressure. The company accelerated cost reduction measures and proactively managed working capital to contain the impact as best as it could. The total 2008-09 sales volume (including exports) is 506,421 units, compared to 585,649 units in the previous year. The company retained its domestic leadership position in commercial vehicles, and continued to be amongst the top three in passenger vehicles. Domestic commercial vehicles sales amounted to 265,373 units (2007-08: 312,935 units). The company increased market share in commercial vehicles to 63.8% (2007-08: 62.2%), aided by its wide product offering. Domestic passenger vehicles sales amounted to 207,512 units (2007-08: 218,055 units).The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover market share in passenger vehicles in the second half which stands at 13.1% for the year


100

(2007-08: 14%) and a March exit share of 14.5%. Tata Motors’ exports were 33,536 numbers (2007-08: 54,659 numbers), impacted by the worldwide downturn in the industry.

The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea, both of which have been received well. In commercial vehicles too, new products, introduced during the year or the previous year, offering benefits like higher fuel efficiency, grew at a faster rate and helped enhance market share.The landmark events of the year were the acquisition of Jaguar Land Rover on June 2, 2008, and the launch of the Tata Nano on March 23, 2009. Over 2.03 lakh fully paid bookings were received for the Tata Nano,

the deliveries of which will begin from July 2009. The Pantnagar plant began producing the Tata Nano during the year, while the Sanand plant is rapidly progressing towards completion.

DIVIDENDThe Board of Directors has recommended a dividend of Rs.6/- per Ordinary share and Rs.6.50 per ‘A’ Ordinary share of Rs.10/- each for the financial year 2008-09 (2007-08: Rs.15/- for Ordinary share). The dividend is subject to approval of shareholders; tax on the dividend will be borne by the Company.

The Audited Financial Results for the financial year ended March 31, 2009, are enclosed.

__________________________________________________________

EFFECT OF INFLATION ON CAR MARKET

- Hindustan Times

The growth in the car market has shown declining results as a result of the inflation. The effect on inflation has affected every sector which is related to car manufacturing and production. The increase in the price of fuel and the steel has led to a slower growth rate of the car industry in India. The production of Indian cars has been brought to a noticeable halt for inflation.

It has also been noticed that leading car manufacturer in India like the Tata Motors, Maruti, Hyndai and Honda are trying hard to boost their production and sales of the cars in a scenario where the stock market is on a slow rise. Due to inflation it has also been noticed that the sales of car are being motivated by the discount offers that the

automobile companies are offering to the buyers. Some car manufactures have gone to the extent of giving exchange offers to the consumers and some have introduced a competitive finance rates. The effect of inflation has taken the rise in the price rate of the cars by 3-4%, which in turn suffices the need to meet the rise in price of the raw materials to build a car.

The effect of inflation has affected not only the production and sales of Indian cars but also has significantly affected the car dealer, officials and car financers. Research and observations have led to the conclusion that in the year 2008, the car market and the car industry is expected to witness 8-9% fall.


100

The effect of inflation on the car manufacturers have in turn affected the dealers in a way where they are being pressurized to push the sales graph higher and keep a high profit margin. The financers in the cycle are pressurized by both car manufacturers and dealers to pay the consumers a cent percent financial assistance by reducing on the loan interest rate.

Overall it has been noticed that the automobile market in India and specially the car market in India have experienced a downtrend with the inflation affecting almost every industry to which the car market is essentially related.


THEORETICAL RELEVANCE OF TATA MOTORS’S LONG TERM FINANCIAL BEHAVIOR

- Financial Institute

“As per the Trade off theory, the marginal cost and benefit of debt in determining the best financial

structure of a company is considered, at most considerate liability percentage, a companies market

value is brought up and the companies whose liability percentage diverge from the best possible can

increase their price by bringing their liability percentage towards the target”. (European Journal of

Economics)

“The pecking order theory is based on the idea of asymmetric information between managers and

investors. A company increases its debits by issuing new equities to finance new projects because if

not done the same way then and new investors are brought into consideration then the new Investors

will make most of the profit which is ”the net present value (NPV)” of that particular project which

will cause lose to the present share holders. To avoid this most of the firms tend to finance their new

projects using a security that is not undervalued in the market, which can be internal funds or some

other less dangerous debt securities. Therefore, this is what affects the choice between internal and

external financing. (European Journal of Economics).

“The M&M theory is a theory of capital structure which explains that a company’s market price

is definite by its earning power and by the basic risk of its resources, the three most important

ways of funding, they are issuing shares, borrowing and retaining profits

“As opposed to dispersing them to shareholders in dividends” (Modigliani-Miller Theorem -

M&M)

This theory also says that if there are no taxes, bankruptcy costs, and asymmetric information, in

an efficient market then a company’s value becomes solid for finance by its sources. It makes no

difference how the company’s funds are increased either by issuing stock or by selling debt and

neither matters the dividend policy of the company”. (Modigliani-Miller Theorem - M&M)

Therefore, According to the above composed data the Tata motors raised funds from NYSE in

2004, and then from Bombay stock Exchange, Private Equity Funds, Sale of Stakes, Inter-Group

Sales and Bridge loans, so, this is in accordance to “the pecking order theory which says that a

company increases its debits by issuing new equities to finance new projects because if not done

the same way then and new investors are brought into consideration then the new Investors will

make most of the profit which is ”the net present value (NPV)” of that particular project which

will cause lose to the present share holders. To keep away from this situation most of the firms

tend to finance their new projects using a security that is not undervalued in the market, which

can be internal funds or some other less dangerous debt securities. Therefore, this is what affects

the choice between internal and external financing”.

Hence, the pecking order theory explains the need of the firms to rely on the internal sources of

the company for finances and also explains why the companies prefer debt to equity if external

financing is required.

COMPANY PROFILE

TATA GROUPTata is a rapidly growing business group based in India with significant international

operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore), of

which 61 per cent is from business outside India. The Group employs around 350,000 people

worldwide. The Tata name has been respected in India for 140 years for its adherence to strong

values and business ethics.

The business operations of the Tata Group currently encompass seven business sectors:

communications and information technology, engineering, materials, services, energy, consumer

products and chemicals. The Group’s 27 publicly listed enterprises have a combined market

capitalization of some $60 billion, among the highest among Indian business houses, and a

shareholder base of 3.2 million. The major companies in the Group include Tata Steel, Tata

Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels

and Tata Communications.

The Group’s major companies are beginning to be counted globally. Tata Steel became

the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top

five commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land

Rover. TCS is a leading global software company, with delivery centres in the US, UK,

Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea

company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the world’s

second largest manufacturer of soda ash. Tata Communications is one of the world’s largest

wholesale voice carriers.

In tandem with the increasing international footprint of its companies, the Group is also

gaining international recognition. Brand Finance, a UK-based consultancy firm, recently valued

the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the world.

Businessweek ranked the Group sixth amongst the World’s Most Innovative Companies. And the

Reputation Institute, USA, recently rated it as the World’s Sixth Most Reputed Firm.

Founded by Jamsetji Tata in 1868, the Tata Group’s early years were inspired by the

spirit of nationalism. The Group pioneered several industries of national importance in India:

steel, power, hospitality and airlines. In more recent times, the Tata Group’s pioneering spirit has

been showcased by companies like Tata Consultancy Services, India’s first software company,

which pioneered the international delivery model, and Tata Motors, which made India’s first

indigenously developed car, the Indica, in 1998 and recently unveiled the world’s lowest-cost

car, the Tata Nano, for commercial launch by end of 2008.

The Tata Group has always believed in returning wealth to the society it serves.

Twothirds of the equity of Tata Sons, the Tata Group.s promoter company, is held by

philanthropic trusts which have created national institutions in science and technology, medical

research, social studies and the performing arts. The trusts also provide aid and assistance to

NGOs in the areas of education, healthcare and livelihoods. Tata companies also extend social

welfare activities to communities around their industrial units. The combined development-

related expenditure of the Trusts and the companies amounts to around 4 per cent of the Group’s

net profits.

Going forward, the Group is focusing on new technologies and innovation to drive its

business in India and internationally. The Nano car is one example, as is the Eka supercomputer

(developed by another Tata company), which in 2008 is ranked the world’s fourth fastest. The

Group aims to build a series of world class, world scale businesses in select sectors. Anchored in

India and wedded to its traditional values and strong ethics, the Group is building a multinational

business which will achieve growth through excellence and innovation, while balancing the

interests of its shareholders, its employees and wider society.

CORE VALUES OF TATAAt the Tata Group our purpose is to improve the quality of life of the communities we

serve. We do this through leadership in sectors of national economic significance, to which the

Group brings a unique set of capabilities.

This requires us to grow aggressively in focused areas of business. Our heritage of

returning to society what we earn evokes trust among consumers, employees, shareholders and

the community.

This heritage is being continuously enriched by the formalization of the high standards of

behavior expected from employees and companies. The Tata name is a unique asset representing

leadership with trust. Leveraging this asset to enhance Group synergy and becoming globally

competitive is the route to sustained growth and long-term success.

FIVE CORE VALUES

The Tata Group has always sought to be a value-driven organization. These values continue to

direct the Group’s growth and businesses. The five core Tata values underpinning the way we do

business are:

Integrity: We must conduct our business fairly, with honesty and transparency. Everything

we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our

colleagues and customers around the world, and always work for

the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our day-to-

day work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and with our

customers and partners around the world, building strong relationships

based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to the countries,

communities and environments in which we work, always ensuring

that what comes from the people goes back to the people many times

over.

TATA Group CompaniesFamily prideThe TATA family of enterprises comprises 98 companies in seven business sectors. This section lists all these companies under the sectors in which they operate, besides the two promoter companies of the Group.

The Seven Business Sectors are:Engineering (AUTOMOTIVE):

Tata Auto comp systems:Subsidiaries/Associates/Joint Ventures: International Automotive, Knorr Bremse Systems for commercial Vehicles, Tata Auto Comp GY Batteries, TACO Engineering, TACO Faurecia Design Centre, TACO Hendrickson Suspension Systems, TACO Interiors and Plastics Division, Taco Kunstofftechnik, TACO MobiApps Telemaics, TACO Supply Chain Management, TACO Tooling, TACO Visteon Engineering Center, Tata Ficosa Automotive Systems, Tata Johnson Controls Automotive, Tata Toyo Radiator, Tata Yazaki Auto Comp, TC Springs, Technical Stampings Automotive.

Tata Motors:Subsidiaries /Associates/ Joint Ventures: Concorde Motors, HV Axels, HV Transmissions, Nita Company, TAL Manufacturing Solutions, Tata Cummins, Tata Daewoo Commercial Vehicles Company, Tata Engineering Services, Tata Precision Industries, Tata Technologies, Telco construction Equipment.

Engineering ServicesTata Projects, TCE Consulting Engineers, Voltas

Engineering ProductsTAL Manufacturing Solutions, Telco Construction Equipment Company, TRF

METALS: TATA STEEL

Subsidiaries /Associates/ Joint Ventures: Hooghly Met Coke and Power Company, Jamshedpur Injection Powder (Jamipol), Jamshedpur Utility and Service Company Limited (JUSCO), Lanka Special Steel, Mjunction Serves, NatSteel, Sila Eastern Company, Tata Blue Scope Steel, Tata Metallic, Tata Pigments, Tata Refractories, Tata Ryerson, Tata Sponge Iron, Tata steel (Thailand), Tata Steel KZN, Tayo Rolls, The Dhamra Port Company, The Indian Steel and Wire Products, The Tinplate Company of India, Tm International Logistics, TRF.

ENERGY: POWER

Tata BP Solar India Tata Power

Subsidiaries /Associates/ Joint Ventures: Tata Ceramics, Tata Power Trading, North Delhi Power Limited

OIL AND GAS Tata Petrodyne

CHEMICALS: Rallis India Tata Pigments Tata Pigments

PHARMA Advinus Therapeutics

SERIVES: HOTELS AND REALTY

Indian Hotels (Taj Group)Subsidiaries /Associates/ Joint Ventures: Taj Air, Roots Corporation (Ginger Hotels)

THDC Tata Realty and Infrastructure

FINANCIAL SERVICES Tata AIG General Insurance, Tata AIG Life Insurance, Tata Asset Management,

Tata Capital, Tata Financial Services, Tata Investment Corporation

OTHER SERVICES Tata Quality Management Services, Tata Services, Tata Strategic Management

Group

CONSUMER PRODUCTS: Infiniti Retail Tata Tea

Subsidiaries /Associates/ Joint Ventures: Tata Coffee, Tata Tetley, Tata Tea Inc Tata Ceramics Tata McGraw Hill Publishing Company Titan Industries Trent

INFORMATION SYSTEMS AND COMMUNICATIONS: Nelito Systems Tata Consultancy Services

Subsidiaries /Associates/ Joint Ventures: APONLINE, Airline Financial Support Services, Aviation Software Development Consultancy, CMC, CMC Americas Inc, Conscripti, HOTV, Tata America International Corporation, WTI Advance Technology.

Tata Elxsi SerWizSol Tata Interactive Systems Tata Technologies

COMMUNICATIONS Tata Sky Tata Teleservices

Subsidiaries /Associates/ Joint Ventures: Tata Teleservices (Maharashtra) Tata Communication Tata Net

INDUSTRIAL AUTOMATION Nelco

Subsidiaries /Associates/ Joint Ventures: Tatanet

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 Rs. 320 billion wealth and was one of the top

10 wealth creators in India, With manufacturing facilities in the towns of Jamshedpur, Lucknow,

and Pune. This company was founded by Jamshetji Tata 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 motor’s 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 5 year period. From year 2003-2007, the profits of the company went up at a CAGR of

36.4%, to attain Rs. 331, 525 million in 2007 from Rs. 95, 731 Million in 2003. By floating two

rights issues at the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are

offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 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 Rs. 1.960 Crores, these proceed would be utilized for an

early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for

Acquisition of jaguar and Land Rover from their principle “The Ford Motor Company’s”.

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 Rs. 110 crores, it also sold 10 million shares or 1.36% of Tata steel for RS.

486 crores to Tata Sons, the holding company of whole Tata group firms.

"The Company aims to monetize a part of its funds through a phased divestment of

certain investments preferably as inter-group sales wherever possible at current market prices in

the coming six to eight months," the money that will be released from these investments will

become a part of the capital to be lifted for repayment of the bridging loan taken for the Jaguar-

Land Rover acquisition. Taken in March 2008" (Tata Motors Profile)

It took a 15 month bridge loan of 3 billion in March from a consortium of banks to

finance the JLR accusation and its expansion plans

Since the rights issue was announced on 28 th may its share value has fallen more than 30% and

fell by 1.82% to Rs. 429.85 on BSE, even though the bench mark index gained 3.8% to end at

15, 049.86 points.

The Analysts say that, this is a strategic move taken by Tata Motors because it is allowing the

company to make a lot of profit even when the market is in the financial pressure allows Tata

sons to raise its wager in group companies.

If the company will follow the above mentioned trends then possibly it can raise its finances in a

low liquidity and high interest rate set-up.

INDUSTRY OUTLOOKThe Indian Automobile Industry enjoys the advantage of low cost base, high skilled

labour, strong ancillary network coupled with Government’s support by way of concessional

excise duty of 16% for small cars, ban on overloading and also significant investments proposed

for removing infrastructure bottlenecks. The CV industry is directly related to the economic

growth and development. The growth in demand for CVs is directly related to the IIP index and

any upsurge in economic activities will call for more cargo movement in the economy.

The domestic CV market grew at a CAGR of 26.7% during the last 6 years. In FY07, the

CV segment registered a growth of 32.2% due to Supreme Court’s ban on over loading trucks.

However, we believe that this is a one-time demand and the CV segment may not witness such

kind of growth repeatedly. There is a regulation that restricts the movement of vehicles above

certain age (15 years in National Capital Region and 8 years in Mumbai). Though the rule is not

being followed strictly at present, in future if this rule is implemented strictly it will result in

huge replacement demand.

With the Indian economy expected to grow at 8.5% to 9% in coming years, we expect the

demand for CVs to be fairly decent except for the fact that the industry is currently experiencing

a correction due to sharp spurt in demand in the previous years.

The CV industry witnessed a change in demand dynamics in last few years. The demand

for LCVs in the <=3.5 tonnes segment is rising at the cost of demand in 5 to 7.5 tonnes category,

while demand in 7.5 to 12 tonnes segment and 16.2 to 25 tonnes segment is booming at the cost

of demand in 12 to 16.2 tonnes segment. Demand for trailers of >35.2 tonnes is witnessing a

surge while demand for semi-trailers in 26.4 to 35.2 tonnes segment is suffering. This structural

shift in demand dynamics is due to the evolution of Hub & Spoke model of distribution, which is

now adopted by transportation players because of improved road infrastructure and also the ban

on trucks in many cities by the authorities to tackle the traffic congestion issues. According to

the Hub & Spoke model, HCVs plying over the highways to transport goods to different states

and districts, while MCVs are used in distributing goods to different cities and the last leg of

distribution in intra city is done by using <=3.5 tonner vehicles.

History

History of TATA Motors

1.

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

Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nussarwanji Tata and

J. Baker. The company was established in 1945 as a locomotive manufacturing unit and later

expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with

Daimler-Benz AG of Germany.

2. TATA Indica

The first generation 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

http://en.wikipedia.org/wiki/File:Jaguar_XF_at_NAIAS.JPG

http://en.wikipedia.org/wiki/File:AutoExpoIndica.jpg


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 CityRover.

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

Tata Novus is one of the best selling commercial trucks in South Korea.

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. The reasons behind the

acquisition were:

Company’s global plans to reduce domestic exposure. The domestic commercial vehicle

market is highly cyclical in nature and prone to fluctuations in the domestic economy.

Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in

http://en.wikipedia.org/wiki/Rover_CityRover

http://en.wikipedia.org/wiki/Badge_engineered

http://en.wikipedia.org/wiki/Indica

http://en.wikipedia.org/wiki/Tata_Sumo

http://en.wikipedia.org/wiki/Stationwagon

http://en.wikipedia.org/wiki/Tata_Estate

http://en.wikipedia.org/wiki/File:Tata_novus_ra06.JPG


the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle

sales of the company are at the mercy of the structural economic factors, it is increasingly

looking at the international markets. The company plans to diversify into various markets

across the world in both MHCV as well as LCV segments.

To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata

Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the

strong presence of TDCV in the heavy-tonnage range and introduce products in India at

an appropriate time. This was mainly to cater to the international market and also to cater

to the domestic market where a major improvement in the Road infrastructure was done

through the National Highway Development Project

Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo is

the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has

jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and

buses namely, GloBus and StarBus.

HISPANO CARROCERA

Hispano Divo at the 2008 FIAA in Madrid

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors becameacquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company giving it

controlling rights of the company.

http://en.wikipedia.org/wiki/Bus

http://en.wikipedia.org/wiki/Arag%C3%B3n

http://en.wikipedia.org/wiki/Hispano_Carrocera

http://en.wikipedia.org/wiki/Madrid

http://en.wikipedia.org/wiki/File:Hispano_Divo_01.JPG


JAGUAR CARS AND LAND ROVERAfter 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.

Jaguar XF Land Rover's Range Rover

On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar and

Land Rover operations for US$2 billion. The sale was completed on 2 June 2008 Tata has gained

the rights to the Daimler, Lanchester, and Rover brand names.

In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in

UK. The key acquisition would be of the intellectual property rights related to the technologies.

http://en.wikipedia.org/wiki/Rover_Company

http://en.wikipedia.org/wiki/Lanchester_Motor_Company

http://en.wikipedia.org/wiki/Daimler_Motor_Company

http://en.wikipedia.org/wiki/United_States_dollar




http://en.wikipedia.org/wiki/Land_Rover

http://en.wikipedia.org/wiki/Jaguar_Cars


http://en.wikipedia.org/wiki/File:Land_Rover_Ranger_Rover.jpg



JOINT VENTURES

Tata MarcoPolo released this low-floor bus in India and now it is widely used as public transport

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

acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company

and introduced its highend inter-city buses in the country.

Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based

global leader, lead by Brian Behrle, in bus body building. This joint venture is to

manufacture and assemble fully-built buses and coaches targeted at developing mass

rapid transportation systems.

The joint venture will absorb technology and expertise in chassis and aggregates from

Tata Motors, and Marcopolo will provide know-how in processes and systems for

bodybuilding and bus body design.

http://en.wikipedia.org/wiki/File:N.delhi_bus.jpg


IMPORTANT DEVELOPMENTS

In 2005 & 06

Tata Ace was India's first mini truck

Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in

May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had

changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a

new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged

as the first choice for transporters and single truck owners for city and rural transport. By

October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the

rising demand for Ace. The Ace was built with a load body produced by Autoline Industries.By

2005; Autoline was producing 300 load bodies per day for Tata Motors. Ace is still one of the

number makers for TML, TML sold the 2,00,000th Ace in August 2008, within 4 years since its

introduction.

Tata Ace has also been exported to several European, South American and African

countries. Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars

division.

In 2007In 2007, Tata Motors launched several concept models and future designs of existing

models. It also formed joint ventures with various local companies in several countries to

assemble Tata cars. Tata Motors launched a re-designed version of Tata Xenon TL during Motor


Show Bologna which would be assembled in Thailand and Argentina. A pick-up variant of Tata

Sumo was also launched under the program 'Global Pick-Up'. The company plans to launch the

new pick-up model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia.

Tata Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-car during the

Geneva Auto Show.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel

engine technology. Tata Motors is looking to extend its relationship with Fiat and Iveco to other

segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the

entry of the company into developed markets like Europe and the United States. The project was

initially collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial

Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync

with the needs of sophisticated European customers. The company has formed a joint venture

with Thailand’s Thonburi Company, an independent auto assembler, in which Tata Motors will

hold a 70% stake.

In 2008COMPRESSED AIR CAR

Tata OneCAT

Motor Development International of Luxembourg has developed the world's first prototype of a

compressed air car, named OneCAT. In 2007, MDI owner Guy Negre was reported to have "the backing

of Tata".

http://en.wikipedia.org/wiki/Compressed_air_car

http://en.wikipedia.org/wiki/Luxembourg

http://en.wikipedia.org/wiki/Motor_Development_International


It has air tanks that can be filled in 4 hours by plugging the car into a standard electrical

plug. In 2008 MDI planned to also design a gas station compressor, which would fill the tanks in

3 minutes. There are no gasoline costs and no fossil fuel emissions from the vehicle when run in

town, but "the compressed air driving the pistons can be boosted by a fuel burner".

OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run

at 100 km/h (62 mph) for 90 kilometers (56 mi) range in urban cycle. It is actually a dual fuel car

but it is more efficient than any present Hybrid cars.

IN 2009 AND ONWARDS

Electric vehiclesTata Motors unveiled the electric versions of passenger car Tata Indica and commercial

vehicle Tata Ace. Both run on lithium batteries. The company has indicated that the electric

Indica would be launched locally in India in about 2010, without disclosing the price. The

vehicle would be launched in Norway in 2009.

Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a

50.3% holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for

US$1.93 M, which specialises in the development of innovative solutions for electric vehicles,

and plans to launch the electric Indica hatchback in Europe next year.

http://en.wikipedia.org/w/index.php?title=Innovasjon&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Tata_Motors_European_Technical_Centre&action=edit&redlink=1

http://en.wikipedia.org/wiki/Tata_Ace

http://en.wikipedia.org/wiki/Tata_Indica#Indica_Electric

GLOBAL OPERATIONS

Tata Motors has been aggressively acquiring foreign brands to increase its global

presence. Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them

is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in

2008. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler,

Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South

Korea’s second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles

Company has launched several new products in the Korean market, while also exporting these

products to several international markets. Today two-thirds of heavy commercial vehicle exports

out of South Korea are from Tata Daewoo.

In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus

and coach manufacturer, giving it controlling rights of the company. Hispano’s presence is being

expanded in other markets. On Tata's journey to make an international foot print, it continued its

expansion through the introduction of new products into the market range of buses (Starbus &

Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries

Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Truck range

jointly developed with Tata Daewoo. They will debut in South Korea, South Africa, the SAARC

countries and the Middle-East by the end of 2009. In 2006, it formed a joint venture with the

Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture

fully-built buses and coaches for India and select international markets. Tata Motors has

expanded its production and assembly operations to several other countries including South

Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey,

Indonesia and Eastern Europe. Tata also franchisee/joint venture assembly operations in Kenya,

Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4

continents. Though Tata is present in many counties it has only managed to create a large

consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and

Nepal and has a growing consumer base in Italy, Spain and South Africa.

http://en.wikipedia.org/wiki/Eastern_Europe

http://en.wikipedia.org/wiki/Indonesia

http://en.wikipedia.org/wiki/Turkey




The Government of India announced an automobile policy in December 1997. The policy

required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in

equity if they wished to set up manufacturing projects in India. It also forced them to take on

export obligations to fund their auto part imports and required them to submit to a schedule for

increasing the share of locally made parts in their cars. Mere car assembling operations were not

welcomed.

An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh

investment guidelines for foreign firms wishing to manufacture vehicles in the country.

Investments in making auto parts by a foreign vehicle maker will also be considered a part of the

minimum foreign investment made by it in an auto-making subsidiary in India. The move is

aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The

policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010.

The policies adopted by Government will increase competition in domestic market,

motivate many foreign commercial vehicle manufactures to set up shops in India, whom will

make India as a production hub and export to nearest market. Thus Tata Motors CV will have to

face tough competition in near future, which might affect its growth negatively.

The purchase of Jaguar Cars is expected

to help give Tata Motors a foothold in

European and American markets.

With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its intention to

enter the sedan and sports car markets.

Tata Indica assembled in Thailand and Argentina.

Tata Prima

The Luxury Sedan was designed by Pininfrina and has marked the entry of Tata into the international sedan market. The car is to be sold in India by 2013 and around the world by 2015 Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe.




FUTURE CHALLENGES

Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks.

M&M has formed a 51:49 JV called Mahindra International with ITEC, USA (parent

Navistar International), to manufacture commercial vehicles and to bolster its position in

the CV business. ITEC is the leader in medium and heavy trucks and buses in North

America, and is the world's largest manufacturer of medium-duty diesel engines.

Mahindra International aims to have a presence across the CV market (6-35 tonnes

GVW) with variants of passenger transport, cargo and specialised load applications and is

likely to start producing medium/heavy commercial vehicles from FY09.

Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force

Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty

vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the

16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per

annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in

the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia,

Asia and Africa. Further, the two companies have formed another JV to manufacture

buses in India from end-2007.

Ashok Leyland: Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL)

recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia

manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The

acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press

shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities.

ALL has also entered into technology agreements with Hino Motors of Japan and ZF of

Germany to complement its in-house R&D efforts and developing complementary

components and aggregates.

Suzuki: Suzuki through its subsidiary, Maruti Suzuki in the Indian market may also be

alarming. Maruti has aggressively launched family cars to undermine the Tata models.

MILESTONES

1945 Tata Engineering and Locomotive Co. Ltd. was established to manufacture

locomotives and other engineering products.

1948 Steam road roller introduced in collaboration with Marshall Sons (UK).

1954 Collaboration with Daimler Benz AG, West Germany, for manufacture of

medium commercial vehicles. The first vehicle rolled out within 6 months of the

contract.

1959 Research and Development Centre set up at Jamshedpur.

1977 First commercial vehicle manufactured in Pune.

1983 Manufacture of Heavy Commercial Vehicle commences.

1985 First hydraulic excavator produced with Hitachi collaboration.

1986 Production of first light commercial vehicle, Tata 407, indigenously designed,

followed by Tata 608.

1991 Launch of the 1st indigenous passenger car Tata Sierra.

One millionth vehicle rolled out.

1994 Launch of Tata Sumo - the multi utility vehicle.

1995 Mercedes Benz car E220 launched.

1996 Tata Sumo deluxe launched.

1997 Tata Sierra Turbo launched.

1998 Tata Safari - India's first sports utility vehicle launched.

2 millionth vehicles rolled out.

Indica, India's first fully indigenous passenger car launched.

2001 Indica V2 launched - 2nd generation Indica.

100,000th Indica wheeled out.

Launch of the Tata Safari EX

2002 2,00,000th Indica rolled out.

Launch of the Tata Sumo'+' Series

Launch of the Tata Indigo.

Tata Engineering signed a product agreement with MG Rover of the UK.

2003 On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata

Motors Limited.

3 millionth vehicle produced.

First CityRover rolled out

2004 Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment

agreement and completes acquisition of Daewoo Commercial Vehicle Company

Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty

truck 'NOVUS' , in Korea

Sumo Victa launched

Indigo Marina launched

Tata Motors lists on the NYSE

2005 Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in

Pune

The Tata Xover unveiled at the 75th Geneva Motor Show

Branded buses and coaches - Starbus and Globus - launched

Tata Ace, India's first mini truck launched

The power packed Safari Dicor is launched

Tata Motors launches Indica V2 Turbo Diesel.

One millionth passenger car produced and sold

Inauguration of new factory at Jamshedpur for Novus

Launch of Tata Novus

Launch of Novus range of medium trucks in Korea, by Tata Daewoo

Commercial

Vehicle Co. (TDCV)

2006 Tata Motors vehicle sales in India cross four million mark

Indica V2 Xeta launched

Passenger Vehicle sales in India cross one-million mark

Tata Motors first plant for small car to come up in West Bengal

Tata Motors and Fiat Group announce three additional cooperation agreements

2007 Construction of Small Car plant at Singur, West Bengal, begins on January 21

New 2007 Indica V2 range is launched

Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi),

announce formation of a joint venture company in Thailand to manufacture,

assemble and market pickup trucks.

Roll out of 100,000th Ace

Tata-Fiat plant at Ranjangaon inaugurated

Launch of a new Upgraded range of its entry level utility vehicle offering, the

Tata Spacio.

Launch of Magic, a comfortable, safe, four-wheeler public transportation mode,

developed on the Ace platform

Launch of Winger, India’s only maxi-van

Fiat Group and Tata Motors announce establishment of Joint Venture in India

Launch of the Sumo Victa Turbo DI, the new upgraded range of its entry-level

utility vehicle, the Sumo Spacio

Tata Motors launches Indica V2 Turbo with dual airbags and ABS

Launch of new Safari DICOR 2.2 VTT range, powered by a new 2.2 L Direct

Injection Common Rail (DICOR) engine.

Rollout of the one millionth passenger car off the Indica platform.

2008 Latest common rail diesel offering- the Indica V2 DICOR, launched.

Indigo CS (Compact Sedan), world’s first sub four-metre sedan, launched.

Launch of the new Sumo -- Sumo Grande, which combines the looks of an SUV

with the comforts of a family car.

Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo.

Xenon, 1-tonne pick-up truck, launched in Thailand.

Tata Motors signs definitive agreement with Ford Motor Company to purchase

Jaguar and Land Rover.

Tata Motors completes acquisition of Jaguar Land Rover.

Tata Motors introduces new Super Milo range of buses.

Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III

Commonwealth Youth Games Pune 2008.

Indica Vista – the second generation Indica, is launched.

Tata Motors launches passenger cars and the new pick-up in D.R. Congo.

2009 • Tata Nano is launched.

MANAGEMENT

Board of Directors:

Mr. Ratan N Tata (Chaiman)

Mr. N. A. Soonawala

Dr. J.J. Irani

Mr. V.R. Mehta

Mr. Nusli N Wadia

Mr. S. M Palia

Dr. R. A. Mashelkar

Mr. Ravi Kant

Mr. P. M. Telang

Senior Management

Mr. Ravi Kant : Executive Director

Mr. P. M Telang : Executive Director

Mr. Rajive Dube : President (Passenger Cars)

Mr. C Ramkrishnan : Chief Financial Officer

Mr. P.Y. Gurv : Vice President (Corporate Finance- Accounts and Taxation)

Dr. S. J. Tambe : Vice President (Human Resource)

Mr. Zackria Sait : Vice President (Technical Services)

Mr. A. M Mankad : Head (Car Plant)

Mr. S. B. Borwankar : Head (Jamshedpur Plant)

Mr. S. Krishnan : Vice President (Commercial-PCBU)

Mr. Ravi Pisharody : Vice President (Sales & Marketing)

Mr. H. K. Sethna : Company Secretary

AWARDS

PCBU bags Handa Golden Key Award….

Tata Motors receives Uptime Champion Award 2007.

Aggregates Business, CVBU, bags ’Best Supplier Award’ from ECEL.

‘NDTV Profit’ Business Leadership Award.

Tata Motors bags National Award for Excellence in Cost Management…

Tata Motors’ TRAKIT bags silver award for Excellence in Cost Management…

Tata Motors Pune – CVBU has bagged the “Golden Peacock National Quality Award.

Tata Motors was awarded four prestigious honors, at the ‘CNBC TV18-Auto Car’.

Tata Motors chosen as India’s Most Trusted Brand in Cars…

Business Today selects Mr. P.P Kadle as India’s Best CFO in 2005…

Pune Foundry Division bags prestigious Green Foundry Award…

Tata Motors is ‘Commercial Vehicle Manufacturer of the Year’…

ACE bags ‘Best Commercial Vehicle Design’ at the BBC-Top Gear Awards…

Tata Motors bags the prestigious ‘CII –EXIM Bank award’ for business excellence…

‘Car Maker of the year’ Award for Tata Motors…

Tata Motors is ‘Commercial Vehicle Manufacturer of the year’.

‘CFO of the Year Award 2004’ awarded to Mr. Praveen P Kadle, Executive Director.

Tata Motors wins ‘Golden Peacock Award’ for Corporate Social Responsibility.

Tata Motors – Jamshedpur wins ‘Energy Efficient Unit Award’.

Tata Motors wins the first CSIR Diamond Jubilee Technology Award.

Tata Motors Jamshedpur & Lucknow win awards…

Products of TATA Motors

[1] Passenger cars and utility vehicles

TATASUMO 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 Elegante

2009 Tata Prima

[3] Commercial vehicles

TATA 1616 STARBUS

TATA MARCOPOLO BUSES

Tata Ace

Tata TL/ Telcoline /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 Marcopolo 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 T

MARKETING STRATEGIES

1.LAUNCH OF TATA nano

TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the

masses and they call it “The People’s Car”. It’s a sweet looking small car, just enough to take

four people around the city. 1 Lakh rupees roughly translate to 2500 rupees monthly installment

and because of this reason TATA is expect to sell record breaking numbers and leave Indian

roads blocked.

Following TATA Nano car specs in comparison with Maruti 800:

Overall Length of Nano is 3100 MM which is 7% shorter than Maruti 800

Overall Breadth of Nano is 1500MM which is 4% Wider than Maruti 800

Overall Height of Nano is 1600MM which is 14% Taller than Maruti 800

Overall inside Space of Nano is 21% Bigger than Maruti 800

Engine Capacity 623CC 2 Cylinders, Maruthi 800’s got 3 Cylinders

Power 33BHP, less than Maruthi 800

Top Speed: 120 Kmph Top Speed Lower Than Maruti 800

Fuel efficiency is 20 Kmpl just as Maruti 800

TATA Nano will hit the roads and as it is a definite threat to Maruti 800. TATA stated

that the initial production of this car will be of 250,000 a year. After about four years of hard

efforts TATA Nano (1 lakh rupee car) was on road now.

The introduction of the Nano received media attention due to its targeted low price. The car is

expected to boost the Indian economy, create entrepreneurial-opportunities across India, as well as

expand the Indian car market by 65%. The car was envisioned by Ratan Tata, Chairman of the Tata

Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano has been greatly

appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include

http://en.wikipedia.org/wiki/Tata_Motors

http://en.wikipedia.org/wiki/Tata_Group


http://en.wikipedia.org/wiki/Ratan_Tata

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Indian_economy

http://tnerd.com/tag/1-lakh-rupee-car/

http://www.tatamotors.com/our_world/press_releases.php?ID=340&action=Pull


http://tnerd.com/tag/tata-nano/

http://tnerd.com/tag/1-lakh-rupee-car/

using compressed-air as fuel and an electric-version (E-Nano). Tata Group is expected to mass-

manufacture the Nano, particularly the electric-version, and, besides selling them in India, to also export

them worldwide.

Critics of the car have questioned its safety in India (where reportedly 90,000 people are

killed in road-accidents every year), and have also criticised the pollution that it would cause

(including criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has

promised that it would definitely release Nano's eco-friendly models alongside the gasoline-

model.

The Nano was originally to have been manufactured at a new factory in Singur, West

Bengal, but increasingly violent protests forced Tata to pull out October 2008. Currently, Tata

Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a

mother plant has been proposed for Sanand Gujarat. The company will bank on existing dealer

network for Nano initially. The new Nano Plant could have a capacity of 500,000 units,

compared to 300,000 for Singur. Gujarat has also agreed to match all the incentives offered by

West Bengal government.

http://en.wikipedia.org/wiki/Gujarat

http://en.wikipedia.org/wiki/Uttarakhand

http://en.wikipedia.org/wiki/Pantnagar

http://en.wikipedia.org/wiki/West_Bengal

http://en.wikipedia.org/wiki/West_Bengal

http://en.wikipedia.org/wiki/Singur

http://en.wikipedia.org/wiki/Gasoline


http://en.wikipedia.org/wiki/Rajendra_Pachauri

http://en.wikipedia.org/wiki/Pollution




The Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed

primarily at the Indian market. The car is very fuel efficient, achieving around 26.00km/l on the

highway and around 22.00km/l in the city. It was first presented at the 9th annual Auto Expo on

January 10, 2008, at Pragati Maidan in New Delhi. Nano had a commercial launch on March 23,

2009 and a booking period from April 9 to April 25, generating more than 200,000 bookings for

the car. The sales of the car begin in July 2009, with a starting price of Rs 115,000 ( rupees). This

is cheaper than the Maruti 800, its main competitor and next cheapest Indian car priced at

184,641Rupees.

DESIGN

Ratan Tata, the Chairman of Tata Motors, began development of the world's cheapest production

car in 2003, inspired by the number of Indian families with two-wheeled rather than four-

wheeled vehicles. The Nano's development has been tempered by the company's success in

producing the low cost 4 wheeled Ace truck in May 2005.

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw, The Times of

India reported the vehicle is "a properly designed and built car". The Chairman is reported to

have said, "It is not a car with plastic curtains or no roof — it's a real car."

To achieve its design goals, Tata refined the manufacturing process, emphasized innovation and

sought new design approaches from suppliers. The car was designed at Italy's Institute of

Development in Automotive Engineering — with Ratan Tata requesting certain changes, such as

http://en.wikipedia.org/wiki/I.DE.A_Institute

http://en.wikipedia.org/wiki/I.DE.A_Institute

http://en.wikipedia.org/wiki/The_Times_of_India

http://en.wikipedia.org/wiki/The_Times_of_India

http://en.wikipedia.org/wiki/Auto_rickshaw

http://en.wikipedia.org/wiki/Tata_Ace

http://en.wikipedia.org/wiki/2003


http://en.wikipedia.org/wiki/Maruti_800

http://en.wikipedia.org/wiki/Indian_rupee

http://en.wikipedia.org/wiki/New_Delhi

http://en.wikipedia.org/wiki/Pragati_Maidan

http://en.wikipedia.org/wiki/Auto_Expo

http://en.wikipedia.org/wiki/Fuel_efficiency


http://en.wikipedia.org/wiki/Transport_in_India#Automobiles


http://en.wikipedia.org/wiki/City_car

http://en.wikipedia.org/wiki/Rear-engine_design

http://en.wikipedia.org/wiki/File:Tata_Nano_.jpg

the elimination of one of two windscreen wipers. Some components of the Nano are made in

Germany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and other

technologies.

The Nano has 21% more interior space (albeit mostly as headroom, due to its tall stance) and an

8% smaller exterior compared to its closest rival, the Maruti 800. Tata offered the car in three

versions: the basic Tata Nano Std; the Cx; and the Lx. The Cx and Lx versions each have air

conditioning, power windows, and central locking. Tata has set its initial production target at

250,000 units per year.

COST CUTTING FEATURES The Nano's trunk does not open. Instead, the rear seats can be folded down to access the trunk

space.

It has a single windscreen wiper instead of the usual pair.

It has no power steering.

Its door opening lever was simplified.

It has three nuts on the wheels instead of the customary four.

It only has one side view mirror.

PRICE

Tata initially targeted the vehicle as "the least expensive production car in the world"— aiming

for a starting price of 100,000 rupees or approximately, despite rapidly rising material prices at

the time.

As of August 2009, material costs had risen from 19% to 29% over the car’s development, and

Tata faced the choice of:

introducing the car with an artificially low price through government subsidies and tax-

breaks

forgoing profit on the car

http://en.wikipedia.org/wiki/Production_car

http://en.wikipedia.org/wiki/Maruti_800

http://en.wikipedia.org/wiki/Fuel_Injection

http://en.wikipedia.org/wiki/Bosch

http://en.wikipedia.org/wiki/Germany

using vertical-integration to artificially boost profits on cars at the expense of their

materials industries

partially using inexpensive polymers or biodegradable plastics instead of a full metal-

body

raising the price of the car

Nano is available in three trim levels:

The basic Tata Nano Std priced at 123,000 Rupees has no extras;

The deluxe Tata Nano CX at 151,000 Rupees has air conditioning;

The luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and central

locking

The Nano Europa, European version of the Tata Nano has all of the above plus a larger body,

bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standards

and emission norms.

The base model will have fixed seats, except for the driver's, which will be adjustable, while the

deluxe and luxury models will get air conditioning and body coloured bumpers.

Technical specifications

According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car

with a 623 cc rear engine and rear wheel drive, and has a fuel economy of 4.55 L/100 km

(21.97 km/L, 51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/100 km on

highways ( 25.974 km/L, 61.1 mpg (US), 73.3 mpg (UK)). It is the first time a two-cylinder non-

opposed petrol engine will be used in a car with a single balance shaft. Tata Motors has

reportedly filed 34 patents related to the innovations in the design of Nano, with powertrain

accounting for over half of them. The project head, Girish Wagh has been credited with being

one of the brains behind Nano's design.

Much has been made of Tata's patents pending for the Nano. Yet during a news

conference at the New Delhi Auto Expo, Ratan Tata pointed out none of these is revolutionary or

http://en.wikipedia.org/wiki/Girish_Wagh

http://en.wikipedia.org/wiki/Powertrain

http://en.wikipedia.org/wiki/Patents

http://en.wikipedia.org/wiki/Balance_shaft

http://en.wikipedia.org/wiki/Petrol

http://en.wikipedia.org/wiki/L/100_km

http://en.wikipedia.org/wiki/Rear_wheel_drive

http://en.wikipedia.org/wiki/Rear_engine



http://en.wikipedia.org/wiki/Europe

http://en.wikipedia.org/wiki/Indian_rupee

http://en.wikipedia.org/wiki/Biodegradable_plastic

represents earth-shaking technology. He said most relate to rather mundane items such as the

two-cylinder engine’s balance shaft, and how the gears were cut in the transmission.

Though the car has been appreciated by many sources, including Reuters due to "the way

it has tweaked existing technologies to target an as-yet untapped segment of the market", yet it

has been stated by the same sources that Nano is not quite "revolutionary in its technology", just

low in price. Moreover, technologies which are expected of the new and yet-to-be-released car

include a revolutionary compressed-air fuel system and an eco-friendly electric-version,

technologies on which Tata is reportedly already working, though no official incorporation-date

for these technologies in the new car has been released.

According to Tata, the Nano complies with Bharat Stage-III and Euro-IV emission

standards. Ratan Tata also said, 'The car has passed the full-frontal crash and the side impact

crash'. Tata Nano passed the required 'homologation’ tests with Pune-based Automotive

Research Association of India (ARAI).This means that the car has met all the specified criteria

for roadworthiness laid out by the government including emissions or noise & vibration and can

now ply on Indian roads. Tata Nano managed to score around 24 km per litre during its

‘homologation’ tests with ARAI. This makes Tata Nano the most fuel efficient car in India.

Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAI’s

tests on its windshield. According to ARAI it conforms to Euro IV emission standards which will

come into effect in India in 2010.

REAR MOUNTED ENGINE

The use of a rear mounted engine to help maximize interior space makes the Nano similar

to the original Fiat 500, another technically innovative "people's car". A concept vehicle similar

in styling to the Nano, also with rear engined layout was proposed by the UK Rover Group in the

1990s to succeed the original Mini but was not put into production. The eventual new Mini was

much larger and technically conservative. The independent, and now-defunct, MG Rover Group

later based their Rover CityRover on the Tata Indica.

Tata is also reported to be contemplating offering a compressed air engine as an option.

http://en.wikipedia.org/wiki/Tata_Indica

http://en.wikipedia.org/wiki/Rover_CityRover

http://en.wikipedia.org/wiki/MG_Rover_Group

http://en.wikipedia.org/wiki/Mini_(BMW)

http://en.wikipedia.org/wiki/Rover_Group

http://en.wikipedia.org/wiki/Fiat_500

http://en.wikipedia.org/wiki/European_emission_standards

http://en.wikipedia.org/wiki/Emission_standard#India

http://en.wikipedia.org/wiki/Tata

http://en.wikipedia.org/wiki/Reuters

nano’s TECHNICAL SPECIFICATIONS

Engine: 2 cylinder petrol with Bosch multi-point fuel injection (single injector) all aluminium 33 horsepower (25 kW) 624 cc (38 cu in )

Value Motronic engine management platform from Bosch2 valves per cylinder overhead camshaftCompression ratio: 9.5:1bore × stroke: 73.5 mm (2.9 in) × 73.5 mm (2.9 in)Power: 33 PS (33 hp/24 kW) @ 5500 rpmTorque: 48 N·m (35 ft·lbf) @ 2500 rpm

Layout and Transmission:

Rear wheel drive4-speed manual transmission

Steering: mechanical rack and pinionTurning radius: 4 metres

Performance: Acceleration: 0-70 km/h (43 mph): 14 secondsMaximum speed: 120 km/h (75 mph)Fuel efficiency (overall): 20 kilometres per litre (5 litres per 100 kilometres

(56 mpg-imp; 47 mpg-US))

Body and dimensions: Seat belt: 4Trunk capacity: 150 L (5.3 cu ft)

Suspension, Tires & Brakes:

Front brake: drumRear brake: drumFront track: 1,325 mm (52.2 in)Rear track: 1,315 mm (51.8 in)Ground clearance: 180 mm (7.1 in)Front suspension: McPherson strut with lower A armRear suspension: Independent coil spring12-inch wheels

http://en.wikipedia.org/wiki/Coil_spring

http://en.wikipedia.org/wiki/McPherson_strut

http://en.wikipedia.org/wiki/Suspension_(vehicle)

http://en.wikipedia.org/wiki/Ground_clearance

http://en.wikipedia.org/wiki/Drum_brake

http://en.wikipedia.org/wiki/Drum_brake

http://en.wikipedia.org/wiki/Trunk_(automobile)

http://en.wikipedia.org/wiki/Seat_belt


http://en.wikipedia.org/wiki/Acceleration

http://en.wikipedia.org/wiki/Metre

http://en.wikipedia.org/wiki/Turning_radius

http://en.wikipedia.org/wiki/Steering#Rack_and_pinion.2C_recirculating_ball.2C_worm_and_sector

http://en.wikipedia.org/wiki/Manual_transmission

http://en.wikipedia.org/wiki/Rear_wheel_drive

http://en.wikipedia.org/wiki/Rpm

http://en.wikipedia.org/wiki/Torque

http://en.wikipedia.org/wiki/Rpm

http://en.wikipedia.org/wiki/Power_(physics)

http://en.wikipedia.org/wiki/Stroke_(engine)

http://en.wikipedia.org/wiki/Bore_(engines)

http://en.wikipedia.org/wiki/Compression_ratio

http://en.wikipedia.org/wiki/Camshaft

http://en.wikipedia.org/wiki/Four-stroke_cycle_engine_valves

http://en.wikipedia.org/wiki/Robert_Bosch_GmbH

http://en.wikipedia.org/wiki/Engine_control_unit

http://en.wikipedia.org/wiki/Motronic

http://en.wikipedia.org/wiki/Cubic_inch

http://en.wikipedia.org/wiki/Cubic_centimetre

http://en.wikipedia.org/wiki/Aluminium

http://en.wikipedia.org/wiki/Fuel_injection

http://en.wikipedia.org/wiki/Fuel_injection#Multi-point_fuel_injection

http://en.wikipedia.org/wiki/Robert_Bosch_GmbH

http://en.wikipedia.org/wiki/Petrol

http://en.wikipedia.org/wiki/Cylinder_(engine)

http://en.wikipedia.org/wiki/Straight-two

2. Modification in TATA Sumo

The Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of

Qualis to launch the Toyota Innova proved advantageous to Tata Sumo. The Sumo has seen a

series of changes in terms of refinement in this decade. It has been the favorite choice for cab

owners, as it is rugged and affordable.

The Tata Sumo has been enjoying its position in the MUV market since 1994. It had stiff

competition with new Sumo Victa has been portrayed as a family lifestyle vehicle, but in fact is a

carryover of the old Sumo, with some cosmetic changes. The Sumo comes in nine Victa variants:

CX 10/7 Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9 Str, EX 10/7Str, GX 7

Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, are powered by a

2-litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre turbocharged diesel

engine that generates 89 bhp. The Victa DI variants get a 3-litre turbocharged diesel engine.

Refinement, both internal and external, is evident across the variants. Tata's latest three variants

under the 'Sumo Grande' category are LX, EX and GX available in 2-seater, 7- seater and 8-

seater configurations. Sumo Grande boasts of a powerful 2.2-L Direct Injection Common Rail

(DICOR) engine

SUMO SPACIOA no-frills version called the Tata Spacio is also available. It is equipped with a 3000 cc

DI diesel engine sourced from the popular LCV Tata 407. The prominent visual difference was

the presence of round headlamps instead of the rectangular lamps. A soft top version of the

Spacio called the Spacio ST was also introduced for the rural markets. After the facelift, the

Spacio inherited the styling elements of the older Tata Sumo. In 2007, the Victa became

available with the Spacio's 3000 cc engine. And in terms of styling, the positioning of the spare

wheel was changed from the rear tailgate to the underbody of the vehicle. This model comes in 8

and 10 seater variants and is very much popular with private transporters & contract taxi vendors

because of its lower cost.

SUMO VICTA

The new Sumo Victa released in 2004 featured power windows, power steering, dual AC,

central locking, clear lens multi reflector head lamps, crystal finish tail lamp cluster, anti glare

http://en.wikipedia.org/wiki/Central_locking

http://en.wikipedia.org/wiki/Power_steering

http://en.wikipedia.org/wiki/Power_windows

ORVMS with electronic control, remote keyless entry, tachometers, LCD monitors, voice

warnings, multiple trip odometers are all either standard or available options.

New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10, 2008 powered with a new generation

2200 cc 120 bhp (89 kW; 122 PS) DICOR (Direct Injection Common Rail) engine. It is the most

up market version of the Sumo available and features completely different body work. It lies

below the Tata Safari in Tata's product portfolio.

SUMO GRANDE Specifications

Top speed 148 km/h (92 mph)0 to 100 km/h (62 mph) 17.6 sEngine Type 2.2L DICOR, 32 Bit ECU and Variable Geometry TurbochargerDisplacement (Capacity) 2179 ccTransmission 5-speed manualPower 120 PS (118 hp/88 kW) @ 4000 rpmTorque 250 Nm (184 lb·ft) @1500 rpmValve Mechanism DOHCCylinder Configuration Inline 4Fuel Type DieselFuel Tank Capacity (Ltrs.) 65Minimum Turning Radius 5.25 metersWheel size 16 inchTyres 235/70 R 16 (tubeless)Ground Clearance 205 mm / 8.07 inchesSteering Power Steering, Tiltable & CollapsibleColours Zephyr Green, Marine Blue, Sunset Orange, Mineral Red, Arctic

White, Arctic Silver, Quartz Black. (7 Colours)

TATA SUMO GRANDE (More than meets the eye)

http://en.wikipedia.org/wiki/Tata_Safari

http://en.wikipedia.org/wiki/Common_rail

http://en.wikipedia.org/wiki/2008

http://en.wikipedia.org/wiki/January_10

http://en.wikipedia.org/wiki/Tachometer

http://en.wikipedia.org/wiki/Remote_keyless_entry


3. NEW VERSION OF INDIGO ,INDIGO DICOR

Dicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which has

already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver

maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been

made apt for Indian roads especially with its driver & co passengers oriented positive attributes

such as:

Anti-submarine front seats

New electronic instrument cluster with engine RPM meter

Rear Seat with double folding backrest

Video player with MP3: with headrest mounted LCD screens

1.4-litre as rail diesel engine

Indigo LX Dicor

Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear

view window, black dials with chrome rings & star check as the new pattern for its console &

AC fascia.

Indigo LS Dicor

Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz

silver as the new pattern for console & AC fascia. It has no mounted LCD screens.

Mileage (City) : 14.75 kmpl Mileage (Highways) : 18.35 kmpl

ENGINESPetrol 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor

Max. Power - 85 PS @5500 rpm Max. Torque - 12 Kgm @ 3500 rpm

Diesel Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. Power -70 PS @ 4500 rpm Max. Torque - 13.5 Kgm @ 2500 rpm

Dicor 32-bit microprocessor based 1396 cc DICOR (Direct Injection Common Rail) 16-valve engine with Dual Over Head Camshafts and a Variable Geometry Turbocharger (VGT) Max. Power-70 PS@4000 rpmMax. Torque - 140Nm@1800-3000 rpm

4. TAPPING OF RURAL MARKETS

According to the National Council for Applied Economic Research, or NCAER, rural

India accounts for 70% of India’s population, 56% of the national income, 64% of the total

expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets

pale before the huge potential they offer a company. Of the total sales (of consumer goods),

around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAER

data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16

trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income will

be about two-thirds of the rural economy by 2012-13.

Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of

which runs on cash. Tata motors ltd. is working on strategies to make inroads into these markets.

SWOT Analysis - Tata Motors Limited

SWOT – Strengths, Weaknesses, Opportunities, Threat

STRENGTHS

The internationalization strategy so far has been to keep local managers in new

acquisitions, and to only transplant a couple of senior managers from India into the new

market. The benefit is that Tata has been able to exchange expertise. For example after

the Daewoo acquisition the Indian company leaned work discipline and how to get the

final product 'right first time.'

The company has a strategy in place for the next stage of its expansion. Not only is it

focusing upon new products and acquisitions, but it also has a programme of intensive

management development in place in order to establish its leaders for tomorrow.

The company has had a successful alliance with Italian mass producer Fiat since 2006.

This has enhanced the product portfolio for Tata and Fiat in terms of production and

knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007,

and the companies have an agreement to build a pick-up targeted at Central and South

America.

WEAKNESSES

The company's passenger car products are based upon 3rd and 4th generation platforms, which

put Tata Motors Limited at a disadvantage with competing car manufacturers.

Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not

got a foothold in the luxury car segment in its domestic, Indian market. Is the brand

associated with commercial vehicles and low-cost passenger cars to the extent that it has

isolated itself from lucrative segments in a more aspiring India?

One weakness which is often not recognised is that in English the word 'tat' means

rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe

not, but they would buy into Fiat, Jaguar and Land Rover.

OPPORTUNITIES

In the summer of 2008 Tata Motor's announced that it had successfully purchased the

Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the

World's luxury car brand have been added to its portfolio of brands, and will undoubtedly

off the company the chance to market vehicles in the luxury segments.

Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for

around USD $16 million.

Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst

the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer

in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will

cost up to 85 times more than a standard Nano!

The new global track platform is about to be launched from its Korean (previously

Daewoo) plant. Again, at a time when the World is looking for environmentally friendly

transport alternatives, is now the right time to move into this segment? The answer to this

question (and the one above) is that new and emerging industrial nations such as India,

South Korea and China will have a thirst for low-cost passenger and commercial

vehicles. These are the opportunities. However the company has put in place a very

proactive Corporate Social Responsibility (CSR) committee to address potential

strategies that will make is operations more sustainable.

The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly

engines. The bus has optional organic clutch with booster assist and better air intakes that

will reduce fuel consumption by up to 10%.

THREATS

Other competing car manufacturers have been in the passenger car business for 40, 50 or

more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean

production.

Sustainability and environmentalism could mean extra costs for this low-cost producer.

This could impact its underpinning competitive advantage. Obviously, as Tata globalizes

and buys into other brands this problem could be alleviated.

Since the company has focused upon the commercial and small vehicle segments, it has

left itself open to competition from overseas companies for the emerging Indian luxury

segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune-

based plant which will build 5000 new Mercedes-Benz per annum. Other players

developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In

fact the entire Indian market has become a target for other global competitors including

Mahindra and Mahindra, Maruti Udyog, General Motors, Ford and others.

Rising prices in the global economy could pose a threat to Tata Motors Limited on a

couple of fronts. The price of steel and aluminium is increasing putting pressure on the

costs of production. Many of Tata's products run on Diesel fuel which is becoming

expensive globally and within its traditional home market.

FINANCIAL ANALYSIS

FINANCIAL OVERVIEWYear 2008-

03 2007-03 2006-03 2005-

03 2004-03

Equity Paid Up 385.54 385.41 382.87 361.79 353Network 7813.99 6843.8 5510.68 4111.39 3589.77Capital Employed 14094.51 10852.94 8447.52 6606.81 4849.54Gross Block 10805.32 8749.85 7945.16 6611.95 5985.4Net Working Capital (Incl Def. Tax)

-1248.57 1997.22 1923.41 -19.92 -1477.22

Current Assets (Incl Def. Tax) 10781.23 10688.65 9638.56 7188.72 3830.76Current Liabilities and Provision (Incl Def. Tax)

12029.80 8691.43 7715.15 7208.64 5307.98

Total Assets/ Liabilities 26118.26 19534.28 16148.55 13797.29 10135.33Gross Sales 32885.03 31611.21 23673.43 20152.03 15165.85Net Sales 28529.40 27185.77 20293.30 17088.59 12895.55Other Incomes 972.93 547.11 693.92 560.29 427.79Value of Output 28488.92 27535.45 20550.21 17232.59 12753.57Cost of Production 24611.49 23290.95 17447.80 14614.45 10511.53Selling Cost 1179.48 1068.56 756.54 581.41 455.56PBIDT 3654.39 3527.98 2867.81 2319.87 1877.42PBDT 3228.78 3159.47 2574.32 2102.06 1674.94PBIT 3002.08 2941.69 2346.87 1869.71 1494.82PBT 2576.47 2573.18 2053.38 1651.90 1292.34PAT 2028.92 1913.46 1528.88 1236.95 810.34CP 2681.23 2499.75 2049.82 1687.11 1192.94Revenue earnings in forex 2844.12 2714.68 2384.81 1497.85 1016.64Revenue expenses in forex 1695.58 1504.74 1132.9 671.40 354.38Capital earnings in forex 0 0 0 0 0Capital expenses in forex 1314.31 472.76 264.88 226.84 43.22Book Value (Unit Curr) 202.68 177.57 143.93 113.64 101.69Market Capitalisation 24037.11 28048.94 3507.39 14976.30 17331.23CEPS (annualised), (Unit Curr.) 67.44 62.31 51.19 44.88 32.77EPS (annualised), (Unit Curr.) 50.52 47.10 37.59 32.44 21.93Dividend (annualized %) 150 150.00 130 125.00 80.00Payout (%) 29.7 31.85 34.6 38.66 36.44

Year Dividend Per Share(DPS) in Rs.

2003-04 8.00

2004-05 12.50

2005-06 13.00

2006-07 15.00

2007-08 15.00

FORMULAE AT GLANCE

Cost of Equity, Ke=

Dividend Per Yield = Dividend Per Share / Book Value

Growth rate (G) = Retention Ratio x ROE

= (1- Payout Ratio) x ROE

ROE = (PAT – Preference Dividend) / Equity Shareholder Funds

Equity Shareholder Funds = Equity Share Capital + Reserves – P& L A/C (Dr. Balance)

Cost of Debt Kd =

ROI =

CAPITAL STRUCTURE (Rs in Cr.)

Year 2008 2007 2006 2005 2004

DPS(Rs) 15 15 13 12.5 8Book Value(Rs.) 202.68 177.57 143.93 113.64 101.69Payout (%) 29.7 31.85 34.6 38.66 36.44Retention Ratio 0.703 0.6815 0.654 0.6134 0.6356PBT 2576.47 2573.18 2053.38 1651.9 1292.34Tax 139.01 476 363.35 363.82 96PAT 2437.46 2097.18 1690.03 1288.08 1196.34Preference Dividend 0 0 19.94 0 0Equity 385.54 385.41 382.87 361.79 353Reserves 7453.96 6484.34 5154.2 3749.6 3236.77P & L Account(Dr Balance) 0 0 0 0 0Equity Shareholder Fund 7839.5 6869.75 5537.07 4111.39 3589.77ROE 0.31 0.31 0.30 0.31 0.33Growth Rate (%) 21.86 20.80 19.73 19.22 21.18Cost of Equity (%) 29.26 29.25 28.76 30.22 29.05Interest 425.61 368.51 293.49 217.81 202.48Total Debt 6280.52 4009.14 2936.84 2495.42 1259.77

Cost of Debt (%) 6.78 9.19 9.99 8.73 16.07PBIT 3002.08 2941.69 2346.87 1869.71 1494.82Capital Employed 14094.51 10852.94 8447.52 6606.81 4849.54ROI (%) 21.30 27.11 27.78 28.30 30.82

WEIGHTED AVERAGE COST OF CAPITAL

Year 2008

Source AmountProportion

(%)Cost(%)

Weighted Cost (%)

Equity 385.54 6.14 29.26 1.80Debt 6280.52 94.22 6.78 6.38

6666.06 100.36 8.18

Year 2007


(%)Cost(%)

Weighted Cost (%)

Equity 385.41 9.61 29.25 2.81Debt 4009.14 91.23 9.19 8.39

4394.55 100.84 11.20

Year 2006


(%)Cost(%)

Weighted Cost (%)

Equity 382.87 13.04 28.76 3.75Debt 2936.84 88.47 9.99 8.84

3319.71 101.50 12.59

Year 2005


(%)Cost(%)

Weighted Cost (%)

Equity 361.79 14.50 30.22 4.38Debt 2495.42 87.34 8.73 7.62

2857.21 101.84 12.00

Year 2004


(%)Cost(%)

Weighted Cost (%)

Equity 353.00 28.02 29.05 8.14

Debt 1259.77 78.11 16.07 12.55

1612.77 106.13 20.69

WEIGHTED AVERAGE COST OF CAPITAL (WACC)Vs

ROI

Year WACC (%)

ROI (%)

Difference

2008 8.18 21.30 13.12

2007 11.20 27.11 15.91

2006 12.59 27.78 15.19

2005 12.00 28.30 16.30

2004 20.69 30.82 10.13

REASONSFiscal 2008-09, the second year of 11th Five Year Plan saw a marginal fall in GDP growth rate of

9%.

The slowdown in economy.

Increase in inflation.

Poor credit availability.

Hardening of interest rate

Rise in price of input material

Proposed increase in fuel price and volatility in foreign exchange rates.

Manufacturing expenses, employee cost increase.

Net raw material consumption inclusive of processing charges increased, with pressure

on volumes and margins.

BALANCE SHEET ANALYSIS

From the above statement it is seems that the company has become highly geared year

after year. To substantiate this, the net current asset which is a representation of their long term

debit is on the increase (Rs. 27,203.30 million In 2006, Rs. 40,235.10 million in 2007, and Rs.

58,792.80 million In 2008) this forms a lower percentage of the total debit (when short term

debit and capital cases are added) the company is perhaps aware of the results that may effect the

interest on the total equity and rather have a preference for short term loans as the environment

dictate, hence, increasing the total equity year by year.

During the year, the Company recorded its highest ever sale of 5, 85,649 vehicles and

grew its turnover to Rs. 33,094 crores to remain as India's largest automobile company by

revenue.

The Company's margins were under pressure during the year due to rising interest rates,

constraints in availability of vehicle financing from outside sources and unprecedented increase

in prices of raw materials.

For long term financial plan and expansion of the new product (Nano) Tata has decided

to raise funds from the stock market rather than going for a loan option (GEARING). This is

because in the past heavy amounts were gained as interest on loans which have a negative effect

on the profit and returns to the stake holders. To support my analysis in financial year 2006, Rs.

36,641 million loans was taken, and in the year 2007, Rs. 79,137 million loan was taken, And

also the companies net profit margins have gone down abruptly from 6.8% in 2005 to 5.6% in

2007, most probably because of the rising cost of the raw material used by the 5 company, but

still the profits of the Tata Motors remain highest than the other auto manufacturers.

The rate of interest on vehicles in India is running very high, because of which the sales

growth have gone a little down. Even then Tata Motors have increased there profits to 6.2% year

after year. And are still financing most of their sales, up to 31% in 2007 from 24% in 2006.

Hence, gross accounts receivable are greater than before by 35% every year and they also had to

make up the shortage of cash by borrowing. When combined with the other expenses to the

growth of fuel, it has augmented its short as well as it’s the long-term debt extensively.

The EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin at 10.8%

was lower than last year as increase in input costs could only be partially absorbed by the market.

Note: Amortization = non-cash expense of writing off intangible assets over their useful lives.

The Profit Before-Tax at Rs.2, 576 crores was 0.1 % higher than last year, The Profit after Tax at

Rs.2, 029 crores, was 6.1 % higher than last year.

FINANCIAL PERFORMANCE

With significant increase in the Company's capital expenditure program’s and the

growing business requirement, the overall borrowings of the Company stood at Rs.6, 280.52

crores at a Debt: Equity ratio of 0.80:1.

The Indian economy remained in high growth phase but witnessed moderation in GDP

growth to 90/ in FY 07-08 as compared to over 9% growth achieved in the previous two years.

The commercial vehicle industry which grew by over 33% in FY 06-07 was impacted by

moderation in economic growth as wet as substantial reduction in vehicle financing and posted a

8.1% growth this fiscal. The passenger vehicle industry also witnessed a slowdown but managed

to grow by 11.1 % by increasing discounts on mature products, launching new models and due to

reduction in excise duty announced by the government in Budget during February'08. Vehicle

exports also grew, albeit at a slightly lower rate of 11.9% as compared to 14.8% witnessed in the

previous year.

Amidst moderation in economic growth, a high interest rate regime and tightening of the

liquidity position, the domestic passenger vehicle industry was able to grow by 11.3% to an all

time high of over 1.5 million vehicles, albeit at a lower growth rate than 21% of the last fiscal.

The Industry's growth rate in fact fell to single digit in the last four months of the fiscal. Growth

was primarily driven by new launches and discounts on existing volume models. Along with two

wheelers, entry level cars (price point below Rs 3 lacs) declined by 2%.The luxury segment

however doubled in size to over 5,000 vehicles and were immune to the slowing market

conditions. Of over 90 models in the industry the top 10 constitute 65% of the industry sales.

After six years of consecutive growth, the Company's passenger vehicle sales decreased

marginally by 4.5% to 2, 18,055 vehicles (including 3,297 Fiat branded vehicles) and the

Company had a 14.2% share in the passenger vehicle market between TATA and Fiat branded

vehicles.

Fiscal 2008-09, the second year of 11th Five Year Plan saw a marginal fall in GDP

growth rate of 9%. In view of the slow down in economy, increase in inflation, poor credit

availability, hardening of interest rates, rise in prices of input materials, proposed increase in fuel

prices and volatility in foreign exchange rates, the commercial and passenger vehicle industry

has a challenging year ahead, with pressure on volumes and margins.

“Fiscal 2006 2007 (Millions of Rupees)

Total short-term debt 7,973 33,145

(Excluding current portion of long-term debt)

Long-term debt net of current portion 27,203 40,235

Total Debt 36,641 79,137”

FINANCIAL ANALYSIS OF TATA MOTORS

On the back of a 3.9% volume growth, the company registered 14.4% y-o-y growth in net

revenue to Rs.60.57 bn during 1QFY09 due to vehicle price increases and favorable mix

Significant cost increases were witnessed in raw material consumption and employee cost

which witnessed y-o-y growth of 18.2% and 13.9% respectively.

Excluding the impact of foreign exchange valuation related losses, the Company’s

EBITDA stood at Rs.5,304.7 mn, compared to Rs.5,463.0 mn the year ago quarter.

EBITDA margin, excluding foreign exchange losses was 7.7% in 1QFY09, compared to

9.0% 1QFY08.

In a rising cost scenario, pressure on margins was visible as the company’s raw material

cost as percentage of net revenues of the Company rose by 240 bps to 72.0% in 1QFY09;

from 69.7% in 1QFY08.

Cost reduction in 1Q FY09 stood at 294 mn.

Net interest expense increased 37.7% y-o-y to Rs.1123.3 mn in Q1 FY09, compared to

Rs.815.6 mn due to rising interest rates and higher debt. However, the interest expense as

a % of net sales increased marginally from 1.3% in Q1 FY08 to 1.6% in Q1 FY09.

Tax rate for first quarter declined substantially and stood at 5.5% as compared to 21.2%

for same period last year, on account of large dividends received by Company on its

Investments/Subsidiaries which are not taxable in the hands of the Company and

weighted deductions available on R&D expenditure.

As on 30th June’08, the balance sheet size of the Company was Rs. 183.98 bn as

compared to Rs 150.96 bn as on 31st March’08. Net of vehicle financing loans and

receivables the Company’s capital employed was Rs 178.33 bn as on 30th June’08

against Rs.135.76 bn as on 31st March’08.

As on 30th June’08, 385.62 mn shares (Face value Rs.10) were outstanding on the

balance sheet of Tata Motors.

The Gross total debt (inc. FCCNs) stood Rs 94.97 bn as on 30th June’08 as compared to

Rs. 62.8 bn as on 31st March’08. The Company’s Net Debt (Net of the surplus investible

funds) stood at Rs 89.3 bn as on 30th June’08. As on 30th June’08, the Company’s net

debt to equity ratio stood at 1.12:1.

Up to June 30th, 2008, 99.94% of the 1% convertible Notes (due 2008) and 97.09% of

the Zero coupon Convertible Notes (due 2009) have been converted into Ordinary Shares

/ ADSs. There have been no conversions of the other FCCNs issued by the Company.

The Company’s Balance Sheet includes Receivables and loans of Rs. 27.94 bn

FINANCIAL PERFORMANCE AS A MEASURE OF OPERATIONAL PERFORMANCE:

In a challenging environment, the Company has been able to marginally grow its

revenues and profits. Whilst the Company's profit after tax improved to Rs.2,028.92

crores from Rs.1,913.46crores in the previous year, the margins were under pressure

mainly due to the rising input costs and lower volume growth.

Turnover, net of excise duties increased by 4.6% to another record high of Rs. 28,730.82

crores from Rs.27, 470.03 crores in FY 2006-07.The total number of vehicles sold during

the year increased by 0.9% to 585,649 units from 580,280 units in FY 2006-07.The

domestic volumes increased by 0.8% to 530,990 units from 526,806 units in FY 2006-07,

while export volumes increased by 2.22% to 54,659 units in FY 2007-08 from 53,474

units in FY 2006-07.

Net Raw Material consumption inclusive of processing charges increased by 6.2%to

Rs.21, 082.10 crores in FY 2007-08, from Rs.19,849.04 crores in FY 2006-07. Material

Cost as a % of net turnover has increased to 73.4% from 72.3% for the last year. This was

largely a result of increase in prices of steel, aluminum, nickel, copper and natural rubber.

However, the Company managed to lower the impact through its on going cost reduction

program with initiatives like global sourcing, vendor rationalization and value

engineering.

Employee Cost increased by 12.9% during the year to Rs. 1,544.57 crores from Rs.

1,368.09 crores registered in the previous year mainly inline with trends in industry and

economy. The manpower increased marginally to 23,230 from 22,349 with increases also

in flexible manpower.

Manufacturing and Other Expenses increased by 2.4% to Rs. 3,011.83 crores in FY 2007-

08 from Rs.2,940.53 crores in FY 2006-07.These were 10.5% of net turnover for the year

as compared to 10.7% for the previous year.

Profit before depreciation, interest and tax increased by 0.5% to Rs.3,575.50 crores from

Rs.3,557.56 crores in FY 2006-07.The margin decreased to 12.4% from 13% in FY 2006-

07.

Depreciation (including product development expenditure) for 2007-08 increased by

6.8% to Rs. 716.66 crores from Rs.671.31 crores in FY 2006-07 on account of increase in

fixed assets. It represents 2.5% of net turnover as compared to 2.4% for FY 2006-07.

Net interest cost decreased to Rs. 282.37 crores in FY 2007-08 from Rs.313.07 crores in

FY 2006-07. Despite increase in interest rates and increase in capital expenditure, the

reduction was mainly on account of significant reduction in the Company's vehicle

financing portfolio (on account of securitization), better working capital management,

interest earnings and larger capitalization of interest in line with the increase in capital

expenditure.

Profit before Tax (PBT) of the Company increased by 0.13% to Rs. 2,576.47 crores from

Rs. 2,573.18 crores in FY 2006-07.

Profit after Tax (PAT) increased by 6.03% to Rs. 2,028.92 crores from Rs.1, 913.46

crores in FY 2006-07. This was mainly on account of a lower tax provision owing to the

increase in spends on Research and Development and income from capital gains, which is

subject to a lower tax rate. Basic Earning Per Share (EPS) increased by 5.79% to

Rs.52.64 as compared to Rs.49.76 last year.

Investments increased to Rs.4, 910.27 crores in FY 2007-08 from Rs.2, 477.00 crores in

FY 2006-07.

The Profit Before –Tax at Rs. 2,576 crores was 0.1% higher than last year. The Profit

after Tax at Rs. 2,029 crores, was 6.1% higher than last year.

Financial performance of a company is satisfactory and attaining good return’s of the

capital employed even in peak stage as WACC is less than about 13.12%

GLOBAL AUTOMOBILE INDUSTRY

EXPECTED GROWTH by 2015-16

Expected to grow at 13% p.a over the next decade to reach around

USD $ 120 - 159 bn by 2016.

INDIAN AUTOMOTIVE PLAYERS: OVERVIEW OF THE

PLAYERS IN THE INDIAN INDUSTRY

The Indian auto industry is highly competitive with a number of global and Indian auto companies

present. Hence, we have conducted an Inter company analysis of Tata with Mahindra and Mahindra and

Maruti Udyog, to get an idea of the company’s position (operation and profitability) vis a vis its

competitors.

INTER COMPANY ANALYSIS:Key Players in the Indian auto industry – Passenger Cars And CVs

The largest Player in the Indian industry. Plans to launch new and exciting products

in the Indian markets, including the ‘100,000’ cars.

TOYOTA has vision of capturing 10% share of Indian passenger car market by 2010.

The third largest passenger car manufacture in India and one of the largest

exporters of vehicles. Has establishes India as one of its manufacturing bases in

the

world, is planning to invest heavily to boost exports from India.

Maruti Suzuki’s JV in India and the largest passenger car manufacturer in India.

One of the leading players in the Indian premium cars segment.

One of the largest players in the UV/ MUV segment

One of the leading players in the Indian premium cars segment.

Plans to enter the small car segment by re-launching the matiz.

The 2nd largest CV manufacturer in India.

Other global players who are in India have plans for India includes – VOLVO,

DAIMLER CHRYSLER, BMW and NISSAN MOTORS.

Project involves:

Financial performance in automobile industry

Market performance

Cost saving initiatives

Introduction about TATA Motors

Procedure followed by TATA Motors for catering to the needs and queries of the

customers

Quantitative research

Awareness regarding the facilities provided by TATA Motors.

Overall opinion about TATA Motors.

Scope of the Study: To find the Market position.

For Economic and the industry environment.

This study would be useful for companies to know what people perceive and thinking about Tata Motors and its products.

This study would be useful to other students as a secondary data.

This study would be useful to form strategies.

Research Methodology:

The purpose of methodology is to describe the process involved in research work. This

includes the overall research design, data collection method, the field survey and the analysis of

data.

Objective of the Study:

To know the consumer satisfaction.

Financial performance in automobile industry.

Market performance.

Market position.

Economic and the industry environment.

Cost saving initiatives.

To find out the satisfaction level of people.

To find out the awareness level of customer.

To find the satisfaction amongst the customers of TATA Motors.

Sources of Data Collection:

Primary:For my survey primary data have been used as a questionnaire to collect the data.

SECONDARY:The secondary data has been collected from the following modes:

Magazines

Books

Newspaper

Data through internet sources

RESEARCH DESIGN:Research Design is the arrangement for conditioned for data collection & analysis of data

in a manner that aims to combined relevance to research purpose with economy in procedure.

A research design is a master plan or model for the conduct of formal investigation. It is

blue print that is followed in completing study.

The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primary data.

RESEARCH PLAN

Type of study: For completing my study I have gone for sample study because looking

at the size of population & the time limitation it was not convenient for me to cover entire

population. Hence, I have gone for sample study rather than census study.

Sampling Plan:A sample design is a definite plan for obtaining a sample from a given population. It refers to the

technique or the procedure that researcher would adopt in selecting items to be inched in the

sample i.e. the size of sample. Sampling plan is determined before data are collected.

STEPS IN SAMPLING PLAN :Sampling Frame:

The list of sampling units from which sample is taken is called sampling frame.

Mandi City map was studied thoroughly and samples were selected from the place

in a scattered manner to get effective result.

SAMPLING SIZE:

Total sample size is 100. The following sample size according to area wise is as

follows:

20 LUNAPANI

10 JAIL ROAD

20 CHALCHOWK

20 NER CHOWK

10 REWALSER

10 SUNDER NAGAR

10 PANDO

SAMPLING PROCEDURE:

The selection of respondents were accordingly to be in a right place at a right time and so

the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area

sampling method that attempts to obtain the sample of convenient.

Analysis:The important factors and data’s collected were sequentially analyzed and graphed.

Limitation of the study:

I will have to rely upon the information get from secondary sources (Balance sheet, Profit & Loss Account and Cash Flow ) and given by respondents, which may not be fully true.

This study will be limited to only some areas of Mandi District of Himachal Pradesh. It is only for short period of time. Lack of professional approach since researcher is a student

The sample size is only 100 so the sample may not be truly representative of the Delhi population.

FIELD WORK: I have collected the data through medium called questionnaire collecting the responses

from 100 people in all. I had done my field work in the following area.

LUNAPANI, JAIL ROAD, CHALCHOWK, NER CHOWK, REWALSER, SUNDER NAGAR,

PANDO

I started my project very first educating the respondents about my entire project, and ask

them to co–operate with me. Mostly all the respondent were aware of this type of surveys. So I

didn’t face any type of difficulty during my project in the process of explaining and taking there

responses on the questionnaire.

Comparison of

THE STANDING

TATA MOTORS

vis-á-vis THE

INDUSTRY

TO COMPARE THE STANDING TATA MOTORS vis - á - vis

THE INDUSTRY. I CONDUCTED A FINANCIAL ANALYSIS OF

TWO OF ITS COMPETITORS – MAHINDRA & MAHINDRA

AND MARUTI UDYOG.

The comparison is based on the detailed analysis of the financial statement on the lines of

Liquidity, Solvency, Profitability and efficiency.

LIQUIDITY POSITION:

Purpose of the Liquidity Ratios: The liquidity ratios help to determine a company’s

ability to meet its short-term liabilities. It can be in the form of the current ratio, liquid ratio,

absolute ratio or the operating cycles. While the current ratio, liquid ratio and absolute cash ratio

provide information about the company’s ability to payoff the shot-term obligations, the

operating cycle provides qualitative information about how quickly the company can convert its

stock into cash.

Company Analysis:

Current Ratio for TATA Motors is greater, which implies that it has comfortable liquidity

position, however as compared to its competitors it is least liquid since inventories form a

considerable portion of its current assets and cash i.e. the most liquid asset, the least.

Further, it has a negative operation cycle, which is primarily due to the high credit period

provided to its creditors. While both TATA and M&M have similar inventory days

M&M has an even lower operating cycle due to an even higher credit period. Maruti on

the other hand has an operating cycle of 7 days, which is much higher as compared to the

other two.

LIQUIDITY POSITION GRAPHICAL:

1.04 1.08 1.27

00.20.40.60.8

11.21.4

Rat

io

Year 2008 -09

Liquidity Ratio - Liquid Ratio

Maruti

Mahindra

TATA

Inferences Drawn: We can, therefore conclude that TATA Motors has a favorable liquidity

position which is neither too high nor too low, as an extremely high liquidity position would

mean that the company is not using its funds well while a low liquidity position would imply that

it would have difficulty in meeting its short term obligations.

SOLVENCY POSITION:

Purpose of the Solvency Ratios: The solvency ratios are used to measure a company’s ability to

meet its long term obligation. The commonly used ratios to ascertain the solvency position of a

company are Debt Equity Ratio and Interest Coverage Ratio.

Debt/Equity Ratio: The ratio gives the proportion of debt and equity in the total capital structure.

TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets

are financed through debt. Maruti on the other hand has a low Debt Equity Ratio only 9% i.e the

company primarily uses its profits and reserves to find its assets.

Interest Coverage Ratio: A ratio used to determine how easily a company can pay interest on

outstanding debt. The ratio is calculated by dividing a company’s earning before interest and

taxes (PBIT) of one period by the company’s interest expenses of the same period.

PBIT/Sale: The lower the ratio, the more the company is burdened by debt expense. When a

company’s interest coverage ratio is 1.5 or lower, its ability to meet interest expenses may be

questionable. An interest coverage ratio below 1 indicates the company is not generating

sufficient revenues to satisfy interest expenses. TATA Motors has an ICR of 9.22 which implies

that it can easily service its debt obligations. However, its ICR is much less as compared to its

competitors. This is primarily because it the proportion of debt financing employed by TATA

Motors is much higher as compared to M&M or Maruti Udyog. Consequently its debt obligation

is also higher than the other tow.

SOLVENCY RATIO GRAPHICAL ANALYSIS:

PROFIT MARGIN RATIO:

This ratio measure how much out of every rupee of sales a company keeps as earnings. The two

determinants of profit margin are

Operating Profit

PBIT

It is interesting to note here that while TATA Motors has a higher operating profit margin of

12% as compared to M&M’s 9%, its Net Profit Margin (PBIT/Sales) of 10% is much lower than

M&M’s 15%. This implies that a large portion of TATA’s profit are from its operations while

M&M has a considerable amount of non operating income. Maruti has the highest profitability

among the three companies indicating that it has been most successful in controlling its costs.

Rate of Return Ratios

ROTA: ROTA is an indicator of how profitable a company is relative to its total assets.

ROTA given an idea as to how efficient management is at using its assets to generate

earnings.

ROCE: It indicated the efficiency and profitability of a company’s capital investments.

ROCE should always be higher than the rate at which the company borrows; otherwise

any increase in borrowing will reduce shareholders’ earnings

PROFITABILITY RATIO GRAPHICAL ANALYSIS:

Inferences about the companies: ROTA and ROCE for TATA Motors is the least among the

three companies. While TATA has an ROCE of 25% Maruti’s ROCE is nearly 30%. It implies

that there is potential in the industry that is not being fully exploited by TATA Motors. There is

still considerable scope for the company to increase its profits by effectively utilization its assets.

MARKET POSITION:

PE ratio and MV/BV is lowest among the three companies for TATA Motors, despite the

fact that its earnings and book value is higher than M&M. The reason as to why these ratios are

low is clearly its low market value as competitors. The MV/BV Ratio for M&M is 5.2 which is

much higher than TATA’s 3.73 despite the fact that M&M’s BV per share is Rs. 148.11 which is

lower than TATA Motors’s BV of Rs. 198.66 per share.

RESULT/ CONCLUSION:

A detailed analysis of the company shows that the company has had a strong fundamental

as well as a strong market performance over the years. Given the economic and the industry

environment (improving outlook for the CV industry) TATA Motors would be a key beneficiary.

While a pick-up in its CV volumes is evident, operating leverage and cost saving initiatives will

improve margins.

Current Ratio for TATA Motors is greater, which implies that it has comfortable liquidity

position, however as compared to its competitors it is least liquid since inventories form a

considerable portion of its current assets.

TATA Motors has a debt equity ratio of about 52% which means that one-third of its total assets are financed through debt.

TATA Motors has an ICR of 9.22 which implies that it can easily service its debt obligations.

However, its ICR is much less as compared to its competitors. This is primarily because it the proportion of debt financing employed by TATA Motors is much higher as compared to M&M or Maruti Udyog

TATA Motors has a higher operating profit margin of 12% as compared to M&M’s 9%, its Net Profit Margin (PBIT/Sales) of 10% is much lower than M&M’s 15%.

ROTA and ROCE for TATA Motors is the least among the three companies. While TATA has an ROCE of 25% Maruti’s ROCE is nearly 30%. It implies that there is potential in the industry that is not being fully exploited by TATA Motors.

Customer Satisfaction Survey

of

TATA Motors

ROLE OF THE SALES PERSON

He should be neatly dressed

He should have knowledge about various product’s

Features

Variants

Colors

Prices

Sales promotion campaigns

Competitor products, their features, prices, etc.

Latest service and warranty policies

Current availability

Carry copy of ready reckoner

“Do not leave the customer unattended for more than 3 minutes”

CUSTOMER CARE TEAM:

Role of the Customer Care Manager:Customer Care Manager is the leader of the customer care team. He is accountable for the sales

satisfaction index of the dealership. The customer care manager ensures that every customer is

properly followed up and feedback is recorded. Also the customer complaints are recorded and

resolved as soon as possible to the level of satisfaction. The customer care executives report to

the customer care manager.

Customer Care Executive:-

Initially does the Post Sales Follow up (PSF) and monitors the feedback forms at the showroom

Post sales follow up.

PSF’s are done in order to get the first hand feedback from the customer about the

experience that they had during the sales and delivery process.

The first PSF is done within the 72 hours of delivery and the voice or exact wordings of

the customer are recorded. The next PSF call is made after 15 days after the vehicle is

delivered. The feedback form system is a very important tool to obtain customer’s

feedback on the experience that the customer had during the purchase of his/her car.

Steps to be followed after receiving customer complaint:

Firstly customer acre manager gives a control number to all complaints received and

records the same in the customer complaints control register.

Then customer acre manager gets in touch with the customer over the phone and

expresses regret on the inconvenience faced by the customer

Immediate action is taken to ensure that the customer complaint is resolved and writes a

letter of apology

The customer care manager along with the concerned DSE, then visits the customer,

hands over the letter and takes satisfaction note from the customer

Then he sends a copy of the letter and the satisfaction note to Maruti Udyog Ltd. And

also files a copy of the same in the customer complaints register/file.

Then the CCM discusses the customer complaints in the weekly meeting with the general

manager on SSI with the entire showroom staff. Necessary counter measures are taken to

ensure that such complaints are not repeated in future.

All sales staff and managers review customer care activities on daily, weekly and monthly basis.

The SSI review meet is conducted regularly.

According to TATA Motors

“A customer is the most important visitor on our premises

He is not dependent on us,

We are dependent on him,

He is not an interruption on our work,

He is the purpose of it.

He is not an outsider on our business,

He is part of it.

We are not doing him a favor serving him,

He is doing us a favor by giving us the

Opportunity to do so”

How you communicate?

Your words 7%

Your voice 35%

Your body language 58%

Moments of truth

Expectation---------------satisfaction---------------------reality

If you get what you expected

Expectation---------------dissatisfaction----------------reality

If you get less than you expected

Expectation---------------delight--------------------------reality

If you get more than you expected

When customers don’t complain they go somewhere else……….

Customers don’t complain. They pass on their dissatisfaction to their colleagues, family,

greengrocer, suppliers, consultants, managers, sports club, grandparents, neighbors, director, to

you…….

QUESTIONNAIRE

ANALYSIS

Q1. How long have you been associated with Tata Motors

No. of Respondents Percentage

From 1 year 0 0%From 1 – 3 years 0 0%From 3 – 5 years 0 0%From 5 – 10 years 80 80%Above 7 years 20 20%

Q2. (i)

Knowledgeable SalespersonNo. of

Respondents PercentageStrongly Disagree 0 0%Disagree 0 0%Neither Disagree Nor Agree 0 0%Agree 86 86%Strongly Agree 14 14%

0102030405060708090

No. of Respondents

Percentage

Strongly Disagree

Disagree

Neither Disagree Nor Agree

Agree

Strongly Agree

86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable.

Q2 (ii).Employees spent enough time with you before sales


Strongly Disagree 0 0%Disagree 0 0%Neither Disagree Nor Agree 0 0%Agree 64 64%Strongly Agree 36 36%

0

20

40

60

80

No. of Respondents

Strongly Disagree

Disagree


Agree

Strongly Agree

64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this.

Q2 (ii).Employees spent enough time with you during sales



0

10

20

30

40

50

60

70

No. of Respondents

Strongly Disagree

Disagree


Agree

Strongly Agree

62% agreed that sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this.

Q2 (ii).Employees spent enough time with

you after salesNo. of


0

10

20

30

40

50

60

No. of Respondents

Strongly Disagree

Disagree


Agree

Strongly Agree

60% agreed that the sales persons spent enough time with them after sales, 26% strongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales.

Q2 (iii).

Display of MerchandizeNo. of


0

20

40

60

80

100

No. of RespondentsPercentage

Strongly Disagree

Disagree


Agree

Strongly Agree

94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive.

Q2 (iv).

Availability of the ProductNo. Of


0

20

40

60

80

100

No. of Respondents

Strongly Disagree

Disagree


Agree

Strongly Agree

91% agreed that the availability of the product was there, 5% strongly agreed that the availability was there while only 4% said they disagreed with this.

Q2 (v).

Variety/Selection of MerchandizeNo. of


0102030405060708090

No. of Respondents

Strongly Disagree

Disagree


Agree

Strongly Agree

87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this.

Q.2 (vi)

Vehicle in Good ConditionNo. of


0102030405060708090

No. of Respondents

Strongly Disagree

Disagree


Agree

Strongly Agree

82% agreed that the vehicle was in good condition when delivered, 16% strongly agreed with this whereas only 2% disagreed with this.

Q2 (vii).

Prices Are AffordableNo. of


0

10

20

30

40

50

60

No. of Respondents

Percentage

Strongly Disagree

Disagree


Agree

Strongly Agree

64% strongly agreed that the prices are affordable, 21% agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this.

Q2 (viii).

Attractive Discounts OfferedNo. of


0

10

20

30

40

50

60

No. of Respondents

Strongly Disagree

Disagree


Agree

Strongly Agree

55% agreed that the discounts offered are attractive, 34% strongly agreed with this while 11% disagreed and said that the discounts offered were not attractive.

Q2 (ix).Décor Of The Waiting Area Is Pleasing



0

20

40

60

80


Strongly Disagree

Disagree


Agree

Strongly Agree

80%agreed that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing

Q2 (x).

Offered A Test DriveNo. of


0

10

20

30

40

50

60

70

80

No. of Respondents

Percentage

Strongly Disagree

Disagree


Agree

Strongly Agree

74%agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with this.

Q2 (xi).Post Sales Follow Up Done Regularly



0

10

20

30

40

50

60

No. of Respondents

Percentage

Strongly Disagree

Disagree


Agree

Strongly Agree

59%agreed that the post sales follow ups are done regularly, 26% strongly agreed and 15%disagreed with this.

Q2 (xii).

Responds To complaints QuicklyNo. of


4% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this.

0

10

20

30

40

50

60

70

No. of Respondents

Strongly Disagree

Disagree


Agree

Strongly Agree

Q2 (xiii).Service At TATA Service Station Is Excellent



0

20

40

60

80

100


Strongly Disagree

Disagree


Agree

Strongly Agree

82% said that the service at TATA service station is excellent, 14% strongly agreed while only 4% disagreed with this.

Q2 (xiv).Careful With Personal Information



0102030405060708090

No. of Respondents

Percentage

Strongly Disagree

Disagree


Agree

Strongly Agree

85% agreed that yes they were careful with personal information, strongly agreed with this and 8% neither agreed nor disagreed.

Q2 (xv).All The Commitments Are Fulfilled



0

20

40

60

80

100

No. of Respondents

Strongly Disagree

Disagree


Agree

Strongly Agree

94% strongly agreed that all the commitments were fulfilled and 6% agreed with this.

Q2 (xvi).

Value For MoneyNo. of


0

20

40

60

80

100


Strongly Disagree

Disagree


Agree

Strongly Agree

98% strongly agreed that TATA provides value for money while 2% agreed with this.

Q3 (i). Are you aware of the following facilities provided by TATA?

TATA insuranceNo. of

Respondents PercentageYes 98 98%No 2 2%

98% said yes that they are aware about TATA insurance while only 2% said that they were not aware.

Q3 (ii).

Extended warrantyNo. of


97% said they were aware about extended warranty and 3% said that they did not know about this.

Q3 (iii).

True valueNo. of


98% said they were aware about true value and 2% said they were not aware.Q3 (iv).

TATA Motors financeNo. of


75% said that they were aware about TATA Motors finance and 25% said that they were not aware of it.

Q3 (v).

AutocardNo. of


84% said that they were aware about autocard and 16% said that they were not aware of it.

Q3 (vi).

Genuine AccessoriesNo. of


85% said that they were aware of genuine accessories available and 15% said they were not aware.

Q4. What is your overall opinion about TATA?

ChoiceNo. of

Respondents PercentageVery bad 0 0%Bad 0 0%Neither bad nor good 0 0%Good 4 4%Very good 96 96%

0

20

40

60

80

100

No. of Respondents

Very bad

Bad

Neither bad nor good

Good

Very good

96% said that there overall opinion about TATA was that it is very good while 4% said that it is good.

Q 5. How likely would you recommend TATA?

Recommend No. of Respondents Percentage

Very Unlikely 0 0%Unlikely 0 0%Neither Unlikely nor likely 0 0%Likely 10 10%Very Likely 90 90%

90% people said they would very likely recommend TATA to other people and 10% said they would likely recommend TATA to others.

CONCLUSIONOn an average more than 73% people feel that the prices are affordable whereas 12% do

not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with

the discounts offered. 20% said that the test drives are not offered and 15% said that post sales

follow ups are not done regularly whereas 85% said that they were done regularly but people feel

that it is the people’s car as it is satisfactory on all other parameters: knowledgeable sales persons

, employees spent enough time before and during sales, display of merchandise is attractive,

availability of product, variety of merchandize, vehicle in good condition, prices are affordable,

attractive discounts are offered, décor of the waiting area is pleasing, responds to complaints

quickly, service at TATA Motors service station is excellent, careful with personal information

and is value for money . The overall opinion about TATA Motors is very good.

86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed

that the sales persons are knowledgeable. 64% people agreed that the sales persons spent enough

time with them before the sales and 36% strongly agreed with this. 62% agreed that sales persons

spent enough time with them during the sales, while 34% strongly agreed that the sales persons

spent enough time with them during sales and only 4% disagreed with this.

60% agreed that the sales persons spent enough time with them after sales, 26% strongly

agreed with this and 14% disagreed that the sales persons spent enough time with them after

sales. 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the

display of merchandize was attractive. 91% agreed that the availability of the product was there,

5% strongly agreed that the availability was there while only 4% said they disagreed with this.

87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed

that enough variety was there and 6% disagreed with this. 82% agreed that the vehicle was in

good condition when delivered, 16% strongly agreed with this whereas only 2% disagreed with

this. 64% strongly agreed that the prices are affordable, 21% agreed that the prices are affordable

whereas only 15% said that they neither disagreed nor agreed with this.

55% agreed that the discounts offered are attractive, 34% strongly agreed with this while

11% disagreed and said that the discounts offered were not attractive. 80%agreed that the décor

of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area

was pleasing

74% agreed that the test drive was offered to them, 6% strongly agreed that the test drive

was offered while 20% disagreed with this. 59% agreed that the post sales follow ups are done

regularly, 26% strongly agreed and 15%disagreed with this. 4% agreed that the response to

complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed

with this.

82% said that the service at TATA service station is excellent, 14% strongly agreed while

only 4% disagreed with this. 85% agreed that yes they were careful with personal information,

strongly agreed with this and 8% neither agreed nor disagreed. 94% strongly agreed that all the

commitments were fulfilled and 6% agreed with this. 98% said yes that they are aware about

TATA insurance while only 2% said that they were not aware.

SUGGESTIONS

Increase the profit margin during the continuous financial years.

Improving the marketing Strategies.

Analysis the business strategies of competitors.

Making the decision to capture the rural market.

More test drives should be offered.

Should be more particular about Post Sales Follow Up as it shows the

concern of the company with the customer.

Should put in more efforts to promote Tata Motor Finance, Autocard and

Accessories.

Questionnaire

Being an esteem customer of TATA Motors Ltd. you are requested to take out

a few minutes and fill the following QUESTIONNAIRE:

Name: ……………………………………………………………

Address: _______________________________________________________________ _______________________________________________________________ ___________________________________________ Pin Code____________

Gender: Male Female

Age: Below18 18-25 26-35 36-50 51 and above

Occupation:

Service Business Student Housewife

Q.1) How long have you been associated with TATA Motors?_______________________________________________________________________

Q.2.) How would you rate TATA Motors on the following parameter?

Stronglydisagree

Disagree Neither agreeNor

disagree

agree Strongly agree

i) Knowledgeable sales personii) Employees spent enough time

with you: before salesDuring salesAfter sales

iii) Display of merchandise is attractive

iv) Availability of the productv) Variety/selection of merchandisevi) Vehicle in good condition vii) Prices are affordable

viii) Attractive discounts offered ix) Décor of the waiting area is

pleasingx) Offered a test drivexi) Post sales follow ups are done

regularly xii) Responds to complaints quicklyxii) Service at Maruti service station is

excellentxvi) Careful with personal informationxv) All the commitments are fulfilledxvi) Value for money

Q.3) Are you aware of the following facilities provided by Tata Motors?

FACILITIES Yes No

i) Tata Motors insurance

ii) Extended warranty

iii) True value

iv) Tata finance

v) Autocard

vi) Genuine accessories

Q.4) What is your overall opinion about Tata Motors?

Very Bad Neither Bad Good VeryBad nor Good Good

1 2 3 4 5

Q.5) How likely would you recommend Tata Motors?

Very VeryUnlikely Likely

1 2 3 4 5

Date Sign.

ANNEXURE

Summarized Balance SheetIn Millions of INR (except for per share items)

As of2009-03-31

As of2008-03-31

As of2007-03-31

As of2006-03-31

Cash & Equivalents 52.00 65.30 76.50 4,873.30 Short Term Investments 786.00 2,762.80 8,067.80 26,982.80 Cash and Short Term Investments 12,180.60 10,415.30 14,383.70 31,856.10 Accounts Receivable - Trade, Net 52,422.20 47,692.10 34,709.60 18,359.40 Receivables - Other - - - - Total Receivables, Net 52,422.20 47,692.10 34,709.60 18,359.40 Total Inventory 34,340.20 33,923.10 26,303.60 21,353.60 Prepaid Expenses 1,137.20 862.50 467.70 391.90 Other Current Assets, Total 24,440.40 21,040.80 14,223.30 11,618.70 Total Current Assets 124,520.60 113,933.80 90,087.90 83,579.70 Property/Plant/Equipment, Total - Gross

150,721.20 109,262.50 86,228.30 74,415.30

Goodwill, Net 6,968.50 7,239.10 7,034.10 289.90 Intangibles, Net 3,114.10 2,990.00 2,355.10 606.40 Long Term Investments 50,390.00 22,358.90 24,133.60 21,103.80 Other Long Term Assets, Total 32,459.80 5,638.40 4,442.20 1,364.00 Total Assets 369,279.30 271,015.40 202,158.20 159,245.40 Accounts Payable 55,061.30 45,474.00 30,316.30 24,659.90 Accrued Expenses 14,595.00 8,323.70 7,437.50 7,115.80 Notes Payable/Short Term Debt 95,462.30 57,752.60 37,475.10 30,697.50 Current Port. of LT Debt/Capital Leases

14,970.70 5,757.50 1,465.30 1,108.50

Other Current liabilities, Total 3,909.30 3,470.70 4,198.80 4,105.70 Total Current Liabilities 183,998.60 120,778.50 80,893.00 67,687.40 Long Term Debt 58,792.80 40,235.10 27,203.30 25,632.70 Capital Lease Obligations - - - - Total Long Term Debt 58,792.80 40,235.10 27,203.30 25,632.70 Total Debt 169,225.80 103,745.20 66,143.70 57,438.70 Deferred Income Tax 6,119.90 5,983.60 6,135.20 5,390.90 Minority Interest 5,634.80 4,054.10 3,303.80 2,330.90 Other Liabilities, Total 9,469.10 8,595.20 3,607.10 1,794.30 Total Liabilities 264,015.20 179,646.50 121,142.40 102,836.20 Redeemable Preferred Stock, Total - - - -Preferred Stock - Non Redeemable, Net

- - - -

Common Stock, Total 3,855.40 3,854.10 3,828.70 3,617.90 Additional Paid-In Capital 39,778.60 39,711.00 38,773.60 28,143.30 Retained Earnings (Accumulated Deficit)

43,718.70 36,326.80 23,897.00 14,033.90

Treasury Stock - Common - - - -Other Equity, Total 17,911.40 11,477.00 14,516.50 10,614.10 Total Equity 105,264.10 91,368.90 81,015.80 56,409.20 Total Liabilities & Shareholders' Equity 369,279.30 271,015.40 202,158.20 159,245.40 Shares Outs - Common Stock Primary Issue

- - - -

Total Common Shares Outstanding 385.49 385.36 382.82 361.74

Profit And Loss Account (Rs in Crs)

Year Mar 08(12)

Mar 07(12)

Mar 06(12)

Mar 05(12)

Mar 04(12)

Mar 03(12)

INCOME : Sales Turnover 32,885.03 31,611.21 23,673.43 20,152.03 15,165.85 10,585.43 Excise Duty 4,355.63 4,425.44 3,380.13 3,063.44 2,270.30 1,743.79 Net Sales 28,529.40 27,185.77 20,293.30 17,088.59 12,895.55 8,841.64 Other Income 972.93 574.11 693.92 560.29 427.79 323.65 Stock Adjustments -40.48 349.68 256.91 144 -141.98 119.74 Total Income 29,461.85 28,109.56 21,244.13 17,792.88 13,181.36 9,285.03 EXPENDITURE : Raw Materials 20,190.19 19,374.93 14,263.86 11,929.48 8,341.39 5,699.58 Power & Fuel Cost 325.19 327.41 258.51 237.81 214.52 193.51 Employee Cost 1,534.41 1,361.20 1,141.48 1,037.93 879.49 720.37 Other Manufacturing Expenses 1,847.43 1,618.68 1,251.02 1,017.11 722.95 510.39 Selling and Administration Expenses 1,442.91 1,322.88 985.74 795.03 645.73 606.25 Miscellaneous Expenses 1,598.73 1,153.53 784.56 673.78 644.75 529.6 Less: Pre-operative Expenses Capitalized 1,131.40 577.05 308.85 218.13 144.89 156.46 Total Expenditure 25,807.46 24,581.58 18,376.32 15,473.01 11,303.94 8,103.24 Operating Profit 3,654.39 3,527.98 2,867.81 2,319.87 1,877.42 1,181.79 Interest 425.61 368.51 293.49 217.81 202.48 309.29 Gross Profit 3,228.78 3,159.47 2,574.32 2,102.06 1,674.94 872.5 Depreciation 652.31 586.29 520.94 450.16 382.6 362.13 Profit Before Tax 2,576.47 2,573.18 2,053.38 1,651.90 1,292.34 510.37 Tax 139.01 476 363.35 363.82 96 19.71 Deferred Tax 401.54 177.22 142.15 51.13 386 190.55 Reported Net Profit 2,028.92 1,913.46 1,528.88 1,236.95 810.34 300.11 Extraordinary Items 149.49 37.4 145.42 24.77 -29.95 4.94 Adjusted Net Profit 1,879.43 1,876.06 1,383.46 1,212.18 840.29 295.17 Adjst. below Net Profit 0 0 0 0 0 0 P & L Balance brought forward 1,013.83 776.76 585.6 365.8 123.71 0 Statutory Appropriations 0 0 0 0 0 0 Appropriations 1,659.68 1,676.39 1,337.72 1,017.15 568.25 176.4 P & L Balance carried down 1,383.07 1,013.83 776.76 585.6 365.8 123.71 Dividend 578.43 578.07 497.94 452.19 282.11 127.91 Preference Dividend 0 0 19.94 0 0 0 Equity Dividend % 150 150 130 125 80 40 Earnings Per Share-Unit Curr 50.52 47.1 37.59 32.44 21.93 8.87 Book Value-Unit Curr 202.68 177.57 143.93 113.64 101.69 81.2

Cash Flow of Tata Motors ------------ in Rs. Cr. --------

Mar '05

Mar '06 Mar '07 Mar '0812 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 1236.95 1528.88 1913.46 2028.92Net Cash From Operating Activities

1249.82 -221.03 2210.13 6174.50

Net Cash (used in)/fromInvesting Activities

-956.57 -1.06 -2805.10 -5721.86

Net Cash (used in)/from Financing Activities

940.67 -855.27 303.58 1132.46

Net (decrease)/increase In Cash and Cash Equivalents

1233.92 -1077.36 -291.39 1585.10

Opening Cash & Cash Equivalents

771.12 2196.79 1118.15 806.21

Closing Cash & Cash Equivalents

2005.04 1119.43 826.76 2391.31

BIBLIOGRAPHY

BIBLIOGRAPHYBooks:

1. Philip Kotler, Kevin Keller (2009), Marketing Management (Thirteenth Edition)

2. Marketing Management, The McGraw.Hill

Company Rajan Saxena (Third Edition)

3. Berman, Berry and Joel r Evans (Oct- 1997)

Retail Management: A strategic approach 8th edition

Englewood cliffs NJ printcehall

4. Country analysis 1997 “ A framework to identify and evaluate the national business environment”

Hardward business review.

MAGAZINES:

A) OUTLOOK BUSINESS (FEB, 2009)

B) BUSINESS STANDARD (April-July 2009)

C) 4P’S OF BUSINESS AND MARKETING (June 2009)

D) BUSINESS TODAY - Pick and Choose

E) BUSINESS TODAY - Tata Motors to bring Jaguar, Land Rover to India

INTERNET:1. Tata Motors' Official Website

2. Wiki - Tata Motors Ltd

3. http://www.docasi.com/doc/12248800/Grand-Project-on-NANO-Car

4. http://www.capitaline.com

5. http://www.tatamotors.com/our_world/press_releases.php?ID=458&action=Pull

6. http://www.tatamotors.com/our_world/press_releases.php?ID=500&action=Pull

7. http://money.rediff.com/companies/tata-motors-ltd/10510008/cash-flow

8. htttp://www.moneycontrol/com/tata-group/tatamotors

9. http://www.yahoofinance.com/tatamotors

10. http://www.carwale.com/research/cars/tata

http://money.rediff.com/companies/tata-motors-ltd/10510008/cash-flow



http://www.capitaline.com/

http://www.docasi.com/doc/12248800/Grand-Project-on-NANO-Car

Project on TATA Motors

Documents

standing tata motors

project guide

project reporton

jalandhar arun guleria

staff members of satluj

financial analysis

ratio analysis

finance management