RESEARCH ON TATA MOTORS

Industry ->Automotive

Founded - 1945

Founder(s) - JRD Tata

HEAD PERSONSChairman - Mr Ratan TataVice Chairman - Ravi kantCEO - Carl Peter Foster Prakash Telang - MD (India Operations)Ravi Pisharody - President (CVBU)

Products

Automobiles

Engines

Services

Outsourced

Engineering

Design

RECORDSRevenue$14.250 billion (2010)Operating income$10.40 billion (2010)Net income$1.198 billion (2010)Total assets$15.430 billion (2010)Total equity$763 million (2010)

Subsidiaries

Jaguar

Land Rover

TDCV

Hispano Carrocera

TATA TAKES OVER

Jaguar and Land Rover brands

Daewoo

Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million.

StrengthThe 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 final product rights first time.

Company has successful alliance with Italian producer fiat since 2006. This has exchange the product profile of Tata. Style was launch by Tata in 2007 and the company have agreement to built our pick targeted at central and south America.

WeaknessesThe 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 Tata has not got a foothold in the luxury car segment in its domestic, Indian market.

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.

OpportunitiesThe new global track platform is about to be

launched from its Korean (previously Daewoo) plant.

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.

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.

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

Tata Novus

Tata Novus is one of the bestselling commercial trucks in South Korea

Hispano Carrocera

•In 2005, sensing an opportunity in the fully-built bus segment, •Tata Motors acquired a 21% stake in Hispano Carrocera SA.

The leading European bus and coach cabin maker. In 2009, the company picked up the remaining 79% stake in Hispano Carrocera SA for an undisclosed sum, making it a fully-owned subsidiary.

low-floor busesTata and Marcopolo have launched a low-

floor city bus which is widely used by Chennai, Delhi, Mumbai, Lucknow and Banglore transport corporations.

Compressed air car Tata One CAT

•Motor Development International of France has developed the world's first prototype of a compressed air car, named One CAT. In 2007,

Tata Xenon is Tata's bestselling vehicle in Europe.

Financial Highlights

The company's strong operating cash flows helped the company to bring down its interest cost in Financial Year 2004.

The company had a negative working capital in Financial Year 2004., the second year in running.

OutlookThe company expects to outperform the

industry in FY05. This is based on an expected GDP growth rate of 6-6.5%.

The company is currently among the top five players in the global MHCV segment, which includes players like FAW, Volvo etc.

The company plans to build up its customer finance schemes along with Tata Finance.

The company plans to get into the vehicle insurance broking business.

It has a continuous cost reduction initiative, where it tries to reduce direct costs by low cost sourcing and vendor management.

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