Prathamesh Gawane

Marketing B Roll No- 137

Company Profile:
As an enterprise under India’s largest multi-holding company, Tata Motors has grown
significantly in the past 60 years since its establishment in 1945. The company caters to three
main market segments globally: the passenger cars, utility vehicles and commercial vehicles.
A significant breakthrough for the company was the development and commercialization of
the truly Indian cars - Tata Indica and Tata Indigo. The company produced the first mini-truck,
first light and first heavy vehicle and many more firsts in India, being an innovator in their
industry. It has followed a strategy of acquisitions and joint ventures in its mid-stage and
launched new products at a rapid pace in different market segments.

Today, Tata Motors enjoys the position of being India’s leading automobile manufacturer with
increasing presence in Europe, South East Asia, Africa, Australia and the Middle East, South
America, CIS and Russia. It has franchisee / joint venture assembly operations in Bangladesh,
Ukraine and Senegal.

Tata Motors Limited is India’s largest automobile company, with consolidated revenues of INR
2, 32,834 crores (USD 38.9 billion) in 2013-14. It is the leader in commercial vehicles in each
segment, and among the top in passenger vehicles with winning products in the compact,
midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer
and fourth largest bus manufacturer.

The Tata Motors Group’s over 60,000 employees are guided by the mission “to be passionate
in anticipating and providing the best vehicles and experiences that excite our customers
globally.''

Established in 1945, Tata Motors’ presence cuts across the length and breadth of India. Over 8
million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company’s
manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra),
Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad
(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint
venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and
Tata cars and Fiat powertrains. The company’s dealership, sales, services and spare parts
network comprises over 6,600 touch points, across the world.

Tata Motors, also listed in the New York Stock Exchange (September 2004), has emerged as
an international automobile company. Through subsidiaries and associate companies, Tata
Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among
them is Jaguar Land Rover, acquired in 2008. 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 2006, Tata Motors
formed a 51:49 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 – the
plant is located in Dharwad. In 2006, Tata Motors entered into joint venture with Thonburi
Automotive Assembly Plant Company of Thailand to manufacture and market the company’s
pickup vehicles in Thailand, and entered the market in 2008. Tata Motors (SA) (Proprietary)
Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd. set up in 2011, has an
assembly plant in Rosslyn, north of Pretoria. The plant can assemble, semi knocked down
(SKD) kits, light, medium and heavy commercial vehicles ranging from 4 tonnes to 50 tonnes.

Tata Motors is also expanding its international footprint, established through exports since
1961. The company’s commercial and passenger vehicles are already being marketed in several
countries in Europe, Africa, the Middle East, South East Asia, South Asia, South America, CIS
and Russia. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and
Senegal.

The foundation of the company’s growth over the last 68 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 4,500 engineers, scientists and technicians the
company’s Engineering Research Centre, established in 1966, and has enabled pioneering
technologies and products. The company today has R&D centres in Pune, Jamshedpur,
Lucknow, Dharwad in India, and in South Korea, Italy, Spain, and the UK.

It was Tata Motors, which launched the first indigenously developed Light Commercial
Vehicle in 1986. In 2005, Tata Motors created a new segment by launching the Tata Ace,
India’s first indigenously developed mini-truck. In 2009, the company launched its globally
benchmarked Prima range of trucks and in 2012 the Ultra range of international standard light
commercial vehicles. In their power, speed, carrying capacity, operating economy and trims,
they will introduce new benchmarks in India and match the best in the world in performance
at a lower life-cycle cost.

Tata Motors also introduced India’s first Sports Utility Vehicle in 1991 and, in 1998, the Tata
Indica, India’s first fully indigenous passenger car.

In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano. The Tata Nano has
been subsequently launched, as planned, in India in March 2009, and subsequently in 2011 in
Nepal and Sri Lanka. A development, which signifies a first for the global automobile industry,
the Nano brings the joy of a car within the reach of thousands of families.
Tata Motors is equally focussed on environment-friendly technologies in emissions and
alternative fuels. It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation.

Through its subsidiaries, the company is engaged in engineering and automotive solutions,
automotive vehicle components manufacturing and supply chain activities, vehicle financing,
and machine tools and factory automation solutions.

Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas – employability, education, health and environment. The activities touch the lives
of more than a million citizens. The company’s support on education and employability is
focused on youth and women. They range from schools to technical education institutes to
actual facilitation of income generation. In health, the company’s intervention is in both
preventive and curative health care. The goal of environment protection is achieved through
tree plantation, conserving water and creating new water bodies and, last but not the least, by
introducing appropriate technologies in vehicles and operations for constantly enhancing
environment care.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Product range of the company includes:

1. Passenger Cars:

Indica Vista, Indica V2, indica V2 Turbo, Indica V2 Xeta, Indica V2 Dicor., Aria, Zest and
Bolt (upcoming), Indigo XL, Indigo, Indigo Marina, Indigo CS, Nano.

2. Utility Vehicles:

Safari Dicor, Sumo Grande, Sumo, Xenon XT.

3. Trucks:

Medium & Heavy Comm. Vehicles, Tata Novus.

Intermediate Comm. Vehicles.

Light Commercial Vehicles, TL 4×4, Small Commercial Vehicles.

4. Commercial Passenger Carriers:

Buses.

Winger.

Magic

5. Defence Vehicles

Subsidiaries of the company:

1. Jaguar Land Rover.
2. Tata Technologies Ltd. (TTL) and its subsidiaries.
3. Telco Construction Equipment Co. Ltd. (Telcon).
4. HV Axles Ltd. (HVAL).
5. HV Transmissions Ltd. (HVTL).
6. TAL Manufacturing Solutions Ltd. (TAL).
7. Sheba Properties Ltd. (Sheba).
8. Concorde Motors (India) Ltd. (Concorde).
9. Tata Daewoo Commercial Vehicle Company Ltd (TDWCV).
10. Hispano Carrocera S. A. (HC).
11. Tata Motors Insurance Broking & Advisory Services Ltd (TMIBASL).
12. Tata Motors European Technical Centre plc.
13. Tata Motors Finance Limited.
14. Tata Motors Thailand.
15. Tata Marcopolo Motors Ltd (TMML).
16. Tata Motors (SA) Proprietary Ltd (TMSA).
17. TML Distribution Company Ltd (TDCL).

Joint ventures, subsidiaries, associates:

1. Tata Motors has a joint venture (JV, 51:49) with Marcopolo, the Brazil-based maker
of bus and coach bodies. Tata Motors (SA) (Proprietary) is Tata Motors' JV with Tata
Africa Holding (Pty); the JV assembly plant at Rosslyn, Pretoria, assembles light,
 medium and heavy commercial vehicles ranging from 4-50 tonnes from semi knocked
down kits.

Other associates include:

2. Tata Daewoo Commercial Vehicle Company, a 100-percent subsidiary of Tata

Motors in the business of heavy commercial vehicles (www.tata-daewoo.com ).
3. Tata Motors European Technical Centre is a UK-based, 100-percent subsidiary
engaged in design engineering and development of products.
4. Telco Construction Equipment Company makes construction equipment and provides
allied services. Tata Motors has a 60 percent holding; the rest is held by Hitachi
Construction Machinery Company, Japan (www.telcon.co.in/ ).
5. Tata Technologies provides specialised engineering and design services, product
lifecycle management and product-centric information technology services
(www.tatatechnologies.com/ ).
6. Tata Motors (Thailand) is a joint venture between Tata Motors (70 percent) and
Thonburi Automotive Assembly Plant Co (30 percent) to manufacture and market the
company’s pickup vehicles in Thailand (www.tatamotors.co.th/ ).
7. Tata Cummins manufactures high horsepower engines used in the company’s range of
commercial vehicles.
8. HV Transmissions and HV Axles are 100-percent subsidiaries that make gearboxes
and axles for heavy and medium commercial vehicles.
9. TAL Manufacturing Solutions is a 100-percent subsidiary that provides factory
automation solutions and designs and manufactures a wide range of machine tools
(www.tal.co.in/ ).
10. Hispano Carrocera is a Spanish bus manufacturing company in which Tata Motors
acquired a 100 percent stake in 2009 (www.hispano-net.com/ ).
11. Concorde Motors is a 100 percent subsidiary retailing Tata Motors’ range of
passenger vehicles (www.concordemotors.com/ ).
12. Tata Motors Finance is a 100 percent subsidiary in the business of financing
customers and channel partners of Tata Motors (www.tmf.co.in ).
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.
 1961 Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
 1966 Setting up of the Engineering Research Centre at Pune to provide impetus to
automobile Research and Development.
 1971 Introduction of DI engines.
 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.
 1989 Introduction of the Tatamobile 206 – 3rd LCV model.
 1991 Launch of the 1st indigenous passenger car Tata Sierra. TAC 20 crane produced.
One millionth vehicle rolled out.
 1992 Launch of the Tata Estate.
 1993 Joint venture agreement signed with Cummins Engine Co. Inc. for the
manufacture of high horsepower and emission friendly diesel engines.
 1994 Launch of Tata Sumo – the multi utility vehicle. Launch of LPT 709 – a full
forward control, light commercial vehicle. Joint venture agreement signed with M/s
Daimler – Benz / Mercedes – Benz for manufacture of Mercedes Benz passenger cars
in India. Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing
turbochargers to be used on Cummins engines.
 1995 Mercedes Benz car E220 launched.
 1996 Tata Sumo deluxe launched.
 1997 Tata Sierra Turbo launched. 100,000th Tata Sumo rolled out.
 1998 Tata Safari – India's first sports utility vehicle launched. 2 millionth vehicle
rolled out. Indica, India's first fully indigenous passenger car launched.
 1999 115,000 bookings for Indica registered against full payment within a week.
Commercial production of Indica commences in full swing.
 2000 First consignment of 160 Indicas shipped to Malta. Indica with Bharat Stage 2
(Euro II) compliant diesel engine launched. Utility vehicles with Bharat 2 (Euro II)
compliant engine launched. Indica 2000 (Euro II) with multi point fuel injection
petrol engine launched. Launch of CNG buses. Launch of 1109 vehicle – Intermediate
commercial vehicle.
 2001 Indica V2 launched – 2nd generation Indica. 100,000th Indica wheeled out.
Launch of CNG Indica. Launch of the Tata Safari EX Indica V2 becomes India's
number one car in its segment. Exits joint venture with Daimler Chrysler.
 2002 Unveiling of the Tata Sedan at Auto Expo 2002. Petrol version of Indica V2
launched. Launch of the EX series in Commercial vehicles. Launch of the Tata 207
DI. 2,00,000th Indica rolled out. 5,00,000th passenger vehicle 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 Launch of the Tata Safari Limited Edition. The Tata Indigo Station Wagon
unveiled at the Geneva Motor Show. On 29th July, J. R. D. Tata's birth anniversary,
Tata Engineering becomes Tata Motors Limited. 3 millionth vehicle produced. First
CityRover rolled out 135 PS Tata Safari EXi Petrol launched Tata SFC 407 EX Turbo
launched
 2004 Tata Motors unveils new product range at Auto Expo '04. New Tata Indica V2
launched Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment
agreement Indigo Advent unveiled at Geneva Motor Show Tata Motors completes
acquisition of Daewoo Commercial Vehicle Company Tata LPT 909 EX launched
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 Motors acquires 21% stake in Hispano
Carrocera SA, Spanish bus manufacturing Company Tata Ace, India's first mini truck
launched Tata Motors wins JRD QV award for business excellence. The power
packed Safari Dicor is launched Introduction of Indigo SX series – luxury variant of
Tata Indigo Tata Motors launches Indica V2 Turbo Diesel. One millionth passenger
 car produced and sold Inauguration of new factory at Jamshedpur for Novus Tata TL
4X4, India's first Sports Utility Truck (SUT) is launched 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 Tata Motors unveils
new long wheel base premium Indigo & X–over concept at Auto Expo 2006 Indica
V2 Xeta launched Passenger Vehicle sales in India cross one–million mark Tata
Motors and Marcopolo, Brazil, announce joint venture to manufacture fully built
buses & coaches for India & markets abroad Tata Motors first plant for small car to
come up in West Bengal Tata Motors extends CNG options on its hatchback and
estate range TDCV develops South Korea's first LNG–Powered Tractor– Trailer Tata
Motors and Fiat Group announce three additional cooperation agreements Tata
Motors introduces a new Indigo range
 2007 Construction of Small Car plant at Singur, West Bengal, begins on January 21
New 2007 Indica V2 range is launched Tata Motors launches the longwheel base
Indigo XL, India's first stretch limousine Common rail diesel (DICOR) engine
extended to Indigo sedan and estate range 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. CRM–DMS initiative crosses
the 1000th location milestone 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 Ace plant at Pantnagar (Uttarakhand) begins production. Indica Vista – the new
generation Indica, is launched. Tata Motors' new plant for Nano to come up in
Gujarat. 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 Marcopolo Motors' Dharwad plant begins production. Tata Motors
launches Nano – The People's Car Introduction of new world standard truck range.
Launch of premium luxury vehicles – Jaguar XF, XFR and XKR and Land Rover
Discovery 3, Range Rover Sport and Range Rover from Jaguar and Land Rover in
India.
 2010: Tata Ace becomes India's first 1–lakh brand in goods commercial vehicles.
Jaguar Land Rover announces opening of its Dealership in New Delhi. Tata Motors to
construct heavy truck plant in Myanmar under Government of India's Line of Credit.
The company’s Passenger Car Division launches ‘Tata Motors Service Edge' for
leading edge customer service.
 2011: Tata Motors unveils Assembly Plant in South Africa. Jaguar Land Rover
inaugurates new vehicle assembly plant in Pune India. Jaguar celebrates 50 years of
iconic E–Type. Jaguar c–x75 scoops Louis Vuitton award in Paris. Tata Pixel, new
city car concept for Europe, displayed at the 81st Geneva Motor Show. Tata Motors
displays Tata Nano EV at the 80th Geneva Motor Show.
 Tata Venture launched
 Launch of Tata Divo Luxury Coach and Tata Starbus Ultra
 Launch of Tata Nano 2012
 Tata Sumo Gold introduced
 Range Rover Evoque launched in India
 New Tata Indica Vista launched
 Tata Magic IRIS and Tata Ace Zip launched
 Tata Indica eV2 introduced with 25 kmpl mileage
 Tata Pixel, a city car concept for Europe, displayed at the Geneva Motor Show
 Refreshed Tata Indigo Manza introduced
 Tata Prima ConsTruck range launched
 Tata Motors unveiled assembly plant in South Africa
 Tata Nano began international journey with Sri Lanka
 Tata Motors completes 50 years of its International Business
 Jaguar Land Rover inaugurated its vehicle assembly plant in Pune
 Tata Nano launched in Nepal
 HVTL amalgamates into HVAL renamed as TML Drivelines Ltd.
 Tata Motors (Lucknow) produced & dispatched the first Hybrid Chassis to Spain
 Tata Motors (Dharwad) rolled out the first Tata Ace Zip
 Tata 407 celebrated its silver jubilee year
 Jaguar celebrates 50 years of iconic E–Type

 2012: Tata Motors enters Bangladesh’s new car market

 Tata Ace races through the one–million mark in just 2,680 days
 Tata Safari Storme, the Real SUV, hits the road
 Launch of PT Tata Motors Indonesia
 Tata Motors plant at Dharwad comes on stream
 Tata Motors enters into distribution agreement in Myanmar
 Launch of Tata Ace in South Africa

 2013: Tata Nano becomes the first Auto Brand in India to cross 3 million fans on
Facebook
 The Tata Indigo eCS enters Limca Book of Records
 Tata Motors' Jamshedpur plant rolls out its two millionth truck
 Tata Nano offered industry first phenomenon – Swipe your credit card and drive
home a Nano
 Tata Motors launches the world–class range of Tata PRIMA trucks in Sri Lanka.
 Porter’s Five Forces Analysis of Indian Automobile Sector -

1. Industry Rivalry
 Industry Concentration:
The Concentration Ratio (CR) indicates the percent of market share held by a
company. A high concentration ratio indicates that a high concentration of market
share is held by the largest firms - the industry is concentrated. With only a few firms
holding a large market share, the market is less competitive (closer to a monopoly). A
low concentration ratio indicates that the industry is characterized by many rivals,
none of which has as significant market share. These fragmented markets are said to
be competitive. If rivalry among firms in an industry is low, the industry is considered
to be disciplined
 High Fixed costs:
When total costs are mostly fixed costs, the firm must produce capacity to attain the
lowest unit costs. Since the firm must sell this large quantity of product, high levels of
production lead to a fight for market share and results in increased rivalry. The
industry is typically capital intensive and thus involves high fixed costs
 Slow market growth: In growing market, firms can improve their economies.
Though the market growth has been impressive in the last few years (about 8 to 15%),
 it takes a beat in even slight economic disturbances as it involves a luxury good.
Aggressive pricing is needed to sustain growth in such situations
 Diversity of rivals:
Industry becomes unstable as the diversification increases. In this case the diversity of
rivals is moderate as most offer products which are close to standard versions and the
competitors are also mostly similar in strength.
 Highly competitive industry:
The presence of many players of about the same size little differentiation between
competitors, and a very mature industry with very little growth were the features of a
highly competitive industry. Higher the competition in the industry lower would be
the profit margin. To remain ahead in competition, auto-makers were tempted to offer
value added services to the customers incurring more costs.

2. Threat of New Entrants

These are the characteristics that inhibit the entrance of new rivals into the market and
in turn protect the profits of the existing firms. Based on the present profit levels in
the market, one can expect the entrance of new firms into the market or not. The
entrance is however also affected by the start-up costs
 Economies of scale:
The Minimum Efficient Scale (MES) is the point at which unit costs are
minimized. The greater the difference between the MES and the entry unit
cost, greater is the barrier. Economies of scale are becoming increasingly
important as competition is driving the profit margins to lower levels. Also
being a capital intensive industry economies of scale have important
consequence
 Government policies:
 Automobile Industry was delicensed in July 1991 with the announcement of the New
Industrial Policy
 The passenger car industry was delicensed in 1993. No industrial licence is required
for setting up of any unit for manufacture of automobiles except in some special cases
 The norms for Foreign Investment and import of technology have been progressively
liberalized over the years for manufacture of vehicles including passenger cars in
order to make this sector globally competitive
 At present 100% Foreign Direct Investment (FDI) is permissible under automatic
route in this sector including passenger car segment. The import of
technology/technological up gradation on the royalty payment of 5% without any
duration limit and lump sum payment of USD 2 million is allowed under automatic
route in this sector
 The automotive industry comprising of the automobile and the auto component
sectors has made rapid strides since delicensing and opening up of the sector to FDI in
1991
 The industry had an investment of about Rs. 50,000 crore in 2002-03 which has gone
up to Rs. 80,000 crore by the year 2007. The automotive industry has already attained
a turnover of Rs. 1, 65,000 crore (34 billion USD)
 The industry provides direct and indirect employment to 1.31 crore people. The
contribution of the automotive industry to GDP has risen from 2.77% in 1992-93to
5% in 2006-07. The industry is making a contribution of 17% to the kitty of indirect
taxes of the Government. With all the policies regarding the FDI and Tariff barriers as
mentioned above, it has become easier for the foreign players to enter the Indian
automobile industry.

3. Threat of Substitutes
 The replacement market is characterized by the presence of several small-scale
suppliers who score over the organized players in terms of excise duty
exemptions and lower overheads.
•A product’s price elasticity is affected by the presence of substitutes as its demand is
affected by the change in the substitute’s prices
•The cost of the automobiles along with their operating costs was driving customers to
look for alternative transportation options
•The new technologies available also affect the demand of the product
e.g.
: In case of Maruti’s products, the threat of substitutes is high. The competition is
intense as several players have products in the categories given by Maruti. However,
in the 800cc range it is the market leader and the threat of substitute products is low.
Price performance comparison favors heavily towards Maruti in most product
categories. Also the high availability and quality of services offered by Maruti gives
the customer a better trade-off.

4. Bargaining Power of Suppliers

 Suppliers can influence the industry by deciding on the price at which the raw
materials can be sold. This is done in order to capture profits from the market.
 Steel is a major input in this industry and so steel prices have a sharp and
immediate impact on the product price
 The industry being capital intensive switching costs of suppliers is high, other
than steel as raw material which is highly price sensitive and the firm may
easily move towards a supplier with lower cost

5. Bargaining Power of Buyers

 It specifies the impact of customers on the product
 When buyer power is strong, the buyer is the one who sets the price in the
market .Here there is purchases of large volumes
 There is prevalence of alternative options
 Price sensitive customers were some of the factors that determine the extent of
influence of the buyers in this industry
e.g.: In the case of Maruti, the sales volumes have shown increasing trend over past so
many years. The customers are more or less concentrated in metros or other tier two
cities. The industry is also concentrated in these regions mostly. Most of them are
have good amount of knowledge about the product. Except the 800cc range in other
categories brand loyalty is only moderate. Also it is difficult to measure since
repurchases are rare. Product differentiation is high as there are many categories in the
passenger vehicle segment. Buyers get incentives in the form of cost discounts and
better after sales services.
 SWOT ANALYSIS FOR TATA MOTORS:

Strengths
Weakness
Storng domestic player.
Decline in vehicle sales.
Stedy Revenue Growth.
Image of Low qulity makers.
R&D.

SWOT
Opportunity
International Growth. Threats
New product lines. environmental regulation
Use of JLR Image. Global competition

Strengths
Strong domestic player:
Tata Motors is India’s largest automobile manufacturer by revenue. The company’s
market share in the Indian four-wheeler automotive vehicle market (i.e. Automobile
vehicles other than two and three wheeler categories) stood at 26.1% in FY2008. The
company is also the leader in the Indian commercial vehicles with a market share of
62.7% and is the second largest player in the Indian passenger vehicles market with a
share of 14.2% in FY2008. To current consolidated revenues of INR 2, 32,834 crores
(USD 38.9 billion) in 2013-14.
Steady revenue growth:
The company recorded strong revenue growth during 2004-08. During this time, the
revenues of the company grew at a CAGR of 27.1% to reach INR365, 230.6 million
(approximately $9,072.3 million) in FY2008 from INR139, 696 million
(approximately $3,096million) in 2004 to consolidated revenues of INR 2, 32,834
crores (USD 38.9 billion) in 2013-14. The strong revenue growth of the company has
contributed to its market dominance.
Research and development activities:
Tata Motor has strong research and development (R&D) capability. The company
incurred large expenditure for its R&D activities. The company’s R&D activities
focus on product development, environmental technologies and vehicle safety through
its Engineering Research Centre (ERC). The ERC is one of the few government
recognized in-house automotive R&D centers in India. In the recent period, the ERC
developed the Tata Nano, an affordable family car. The strong R&D capability
enables the company to build a broad range of vehicle portfolio and improves its
competitive strength in the automotive industry.

Weaknesses
Decline in vehicle sales: Tata Motors recorded decline or marginal growth in its
vehicle sales in the last financial year. The company recorded a sale of 585,649
vehicles, a growth of 0.9% over last year. During the same time, the automotive
industry in India recorded a growth of 10.4% to reach the total vehicle sales to
2,309,324 units. The overall market share of the company stood at 25.4% in 2008 as
compared to a market share of 27.8% in 2007. The decline in sales would further
affect the company’s market share, and erode investors’ confidence.
Employee productivity:
Tata Motors posted weak revenues in proportion to the total number of its employees.
The revenue per employee of the group stood at INR10 million (approximately $0.24
million), significantly lower when compared to its global competitors such as Toyota
Motor ($.73million), and Nissan Motor ($.53 million). The weak revenue per
employee of the company compared to the global auto majors indicates its weaker
productivity and operational inefficiency.
Opportunities
Product launches:
Tata Motors has launched various new products during the last few years.
Upcoming products are Zest & Bolt.
Nano Pixel is upcoming version for Euro market.
Use of Acquisition of Jaguar and Land Rover brands:
These brands had sales operations in more than 100 countries with over 2,200 dealers.
Acquisition of JLR provides the company with a strategic opportunity to acquire
iconic brands, and increase the company’s business diversity across markets and
product segments.

Threats
Increasing competition:
Tata Motors face intense competition from its domestic as well as foreign competitors
including General Motors, Honda Motor, Maruti Udyog, Mitsubishi Motors, Fiat,
Ford and so on. Competition is expected to intensify further as Indian .automotive
manufacturers obtain greater access to debt and equity financing in the international
capital markets or gain access to more advanced technology through alliances.
Additionally, in recent years, the government of India has permitted automatic
approvals for foreign equity ownership of up to 100% in entities manufacturing
vehicles and components in India.
Environmental regulations:
The company is subjected to extensive governmental regulations regarding vehicle
emission levels, noise, safety and levels of pollutants generated by its production
facilities. These regulations are likely to become more stringent in the near future. In
addition, Jaguar Land Rover has significant operations in the US and Europe which
have stringent regulations relating to vehicular emissions. The proposed tightening of
vehicle emissions regulations will require significant costs for the company.
 BCG MATRICS FOR TATA MOTORS :

STARS
TML Passenger ?
Vehicle Segment,
Light Commercial NANO
Vehicles (e.g.ACE)

CASH COW
TML Heavy & Light DOGS
Commercial
None
Vehicles

The Jaguar & Land Rover take over:

The Tata acquisition of Jaguar Land Rover is a superb example to include in research
notes on takeovers and mergers. At the time (early 2008), Tata’s investment in JLR
seemed to be poorly timed and there were many critics who questioned the strategic
logic of the move as well as its timing. Shortly after the takeover, demand in the
global market for luxury cars collapsed as a result of the financial crisis and Tata was
forced to refinance to support its investment.

Several years later, however, the takeover appears to be a compelling example of a

successful acquisition which is generating substantial shareholder value for Tata as
well as continued support from JLR’s many stakeholder groups in the UK.
Background

Jaguar Land Rover (JLR):

- Jaguar Cars bought by Ford in 1989
- Land Rover bought by Ford from BMW for $1.4bn in 1989
- A difficult relationship between the UK firm and its US owners
- Jaguar fell into heavy losses whilst owned by Ford (reaching up to $600million per
year)
- However, Ford invested heavily in new model development

Tata Group:
- One of India’s largest private conglomerates - used to investing in the UK
- Bought Tetley Tea in 2000
- Bought Corus Steel - a big supplier to JLR - in 2007
- Tata Motors - was already India’s third largest car-maker, but struggling with a poor
image and hampered by rising raw material costs

The Deal

- Ford sells JLR to Tata for in March 2008 just over £1bn - just a few months before a
collapse in global demand in the international car market
- Tata financed the takeover with $3bn of new long-term loans
- The price paid by Tata was approximately half of what Ford paid to buy Jaguar and
Land Rover.; + Ford had continued to incur heavy losses in Jaguar as it failed to turn
the business around.
- The deal took over a year to agree - which may have helped with the post-merger
integration. Tata recognised that it would continue to need support from Ford who
are a main supplier of car components to the two brands.
- No significant change proposed to the businesses by Tata. They claimed that staff,
trade unions and the UK government had been kept informed about the proposed
takeover and supported the move.
- The deal has been endorsed by trade unions, which secured a commitment from Tata
to continue with JLR’s production plans until the end of 2011. This includes
development of new models.

Key drivers of / motives for the takeover

- Acquiring JLR would provide significant potential for revenue synergies, including
giving Tata greater international distribution, broader product range and better
customer service skills
- Tata gains access to world-class engineering capability
- Strengthens relationship between Tata’s steel and motoring businesses

What happened next?

Significant slump in new car sales in late 2008 as a result of the credit crunch; Tata
had to refinance in order to keep JLR solvent. UK government considered a financial
aid package, indicating the strategic importance of JLR to the UK economy

February 2010: Tata secures a £340million loan from the European Investment Bank
to support JLR through recession

May 2011: Tata announces £5b five year investment programme in JLR - focused on
new product development & new equipment at JLR three UK plants + investment in a
planned factory in China. JLR also to link closer with Tata Steel to provide new
lightweight steel alloys for new car models.

November 2011: JLR announces 1,000 new jobs a Land Rover plant in Solihull
boosted by rising demand for SUVs in China, Russia, India and Brazil.

February 2012: Soaring sales of Jaguar and Land Rover cars have helped Indian firm
Tata Motors to a huge rise in profits (up 41% on 2010). JLR arm saw sales rise 37%,
helped by selling 32,000 of its new Range Rover Evoque. China overtakes the UK as
JLR’s biggest market.
 March 2012: JLR and Chery Automobile agree a joint venture that should pave the
way for production of Jaguar and Land Rover cars in China.

April 2012: JLR announces that it will build a successor to its previous sports cars
called the F-type at its factory in Birmingham.

Other evidence of success / failure?

Some evidence about the overall success of the JLR takeover:

http://www.forbes.com/sites/kenrapoza/2012/04/18/for-tata-motors-jaguar-a-gold-mine/

2012: Share price of Tata Motors makes it the-best performing major car maker (up 70%)

JLR worth $14 billion, according to the average estimate of three analysts surveyed by
Bloomberg (compare with takeover price of approx.
http://www.economist.com/node/21548965

“There has been one triumph; JLR, where earnings have soared despite a near-death
experience after the 2008 crash. A chunk of the recovery is due to the fall of the pound:
JLR’s plants are mainly in Britain, though it sells largely in other countries. But that is not the
whole story. Under Tata’s ownership JLR has also launched a killer product, the Range
Rover Evoque, and cracked emerging markets, not least China.”

Hard times

At JLR, the product wasn’t moving and Bombay House was beginning to feel stretched.
Amid talk of the UK government contemplating a bailout of JLR, Tata Motors’ market value
plunged to Rs 6,503.2 crore, with the stock hitting rock bottom Rs 126.45 on 20 November
2008. The market capitalization was less than what it had paid Ford for JLR.

“The global slowdown put the company under tremendous pressure because the management
of JLR had just separated from one big organization and was attaching itself to another not-
so-big group and they were not yet kind of experienced living independently,” said the Tata
executive mentioned above. “We were bleeding. Banks were not giving any money, they
were not available, and they were closed. And we needed money.”
That’s when Ratan Tata came through for Tata Motors, with the parent pumping in capital,
driven by the belief that the JLR acquisition was right and would work. While the turnaround,
when it took place, came as a surprise, Tata Motors saw it three-four quarters in advance.

But before that, in the fiscal ended March 2009, Tata Motors posted its first annual loss in at
least seven years after sales at the luxury units plunged amid the global slump. The
consolidated net loss was Rs 2,500 crore in the year ended 31 March, compared with profit of
Rs 2,200 crore in the year earlier. The JLR unit made a pretax loss of Rs 1,800 crore as
unemployment and the financial crisis damped sales in the US and Europe.

Cash remained “priority No. 1” as JLR was haemorrhaging money and the company sought
outside help.

As JLR didn’t have a cash management system of its own, Tata Motors turned to consultants
KPMG, Forster said.

For the next few months, “cash started to be managed on an hour-to-hour basis— what
cheque was going out, what cheque was coming in”. KPMG declined to participate in the
story. Around the same time, in the spring of 2009, Munich-based Roland Berger Strategy
Consultants was brought in to keep a tab on costs. The mandate to Roland Berger was simple:
make JLR profitable.

Cash management

“A three-tier model was developed,” said Wolfgang Bernhart, partner, Automotive

Competence Center, Roland Berger. First, a short-term goal to manage liquidity with the
assistance of KPMG was put in place.

Then came a mid-term target to contain costs at various levels and the formation of 10-11
cross-functional teams, Bernhart said. A number of management changes, including new
heads at JLR, were made. Finally, a long-term goal that runs until 2014 was drawn up,
focusing on new models and refreshing the existing ones. The key aims—cash management
and checking costs.

When Roland Berger added up the money that could be saved, the company was astonished
at how high the figure was.
A team of young managers was put in charge, in an approach similar to the one followed in
the 2003 restructuring at Tata Motors, with reviews on a daily basis.

Tata Motors also embarked on a plan to divest stakes in group companies to raise cash: In
September 2008, it sold a 1.3% holding in Tata Steel Ltd to holding company Tata Sons Ltd
for a total Rs 485 crore. In November 2008, the board approved a Rs 4,147 crore rights offer,
which was completed in June this year.

All proceeds were channelled into Tata Motors to make JLR profitable. Crucially, Tata
Motors was able to keep product development plans going, which has paid off with the global
economy reviving and customers returning to JLR showrooms.

The programme also saw the workforce being trimmed since July 2008 by around 11,000
from a gargantuan workforce of 27,000 at JLR. According to chief financial officer C.
Ramakrishnan, who spoke to analysts after announcement of the September quarter results,
the workforce was trimmed by another 1,800 to 16,000.

JLR’s turnaround has been aided by external factors. In a 9 November earnings call with
analysts, Ramakrishnan said margins had benefited from favourable currency movements,
widening by one percentage point to 16.6%, over the first quarter of 2010-11. However, the
extent of the turnaround can be gauged when margins are compared with corresponding
quarter of previous year. Margins rose by a whopping 1,370 basis points or 13.7% from 2.9%
in 30 September 2009-10, reflecting the changed dynamics of the company as sales rose
sharply on the back of new product launches and improved market sentiments. About half the
firm’s turnover is dollar-linked while one-fifth is linked to the euro. The rupee has
strengthened against both currencies this year. Since January, the pound has strengthened
4.9% against the dollar and 7.7% against the euro.

The turnaround

Sales are buoyant thanks to the introduction of newer, more fuel-efficient and contemporary
models coupled with the revival of demand in the firm’s key markets such as the UK, the US
and Europe. Despatches of JLR models to dealers globally rose to 115,508 units in the six
months to September from 80,252 in the year ago. The new Jaguar XJ has been especially
successful, with 8,700 of them having been sold since the model’s launch in mid-May.

With JLR accounting for more than half of Tata Motors’ business, the company posted a 100-
fold jump in profit in the three months to 30 September. The debt-to-equity ratio is down to
1.6 times at the consolidated level from from 4.5 times at the end of 31 December 2009.
That’s high but comfortable given surging volumes. The share has risen to a respectable Rs
1,302.15 at close on 10 November on the Bombay Stock Exchange, taking market
capitalization to Rs 79,573.08 crore ($18 billion).

The first real contact between Tata and Ford took place in early 2007 when Ratan Tata got
“an informal brief” on JLR. Tata asked Kant and other senior Tata Motors executives if the
acquisition made sense. When he got a positive answer, Tata Motors began a nine-month due
diligence process.

There were five key issues that persuaded Tata Motors to go ahead. While Jaguar had a
mixed reputation, both were still “great brands”. Ford had pumped in a great deal of cash to
improve quality and it was just a matter of time before this made a difference. Second, JLR
had very good automobile plants. Third was the steadfastness of the dealers despite losses
over the past four-five years.

Jaguar cars had already started moving up the ranks of the annual JD Power customer
satisfaction rankings. Besides that, there was a crop of great new models in the pipeline,
among them the Jaguar XJ and XF and the upcoming Land Rover, which convinced Tata
Motors that JLR was on the cusp of change.

Ultimately, Forster says, it boiled to down to this: JLR had a good engineering base and “a
very passionate and committed group of people wanting to create new products.

“So if you put it all together, we have a recipe for success,” said the Tata executive cited
above. “What else can you ask for? At least there was no doubt in Mr Tata’s mind and my
mind that we should go for it with a single-minded focus and we went for it.”

Union backing

One of the early endorsements that Tata Motors got was from the unions, though they gave
the firm a grilling.

“We had this meeting (in late 2007) with the union, a very difficult one for three hours. It was
eyeball-to-eyeball. Dave (Osborne, Unite’s lead negotiator for the car industry) and Tony
(Woodley, Unite joint general secretary) were asking very tough questions. We didn’t have
too much hope,” said the Tata executive. “But somewhere in my heart I felt the meeting had
gone well. We came out very transparent, sincere, and honest.”
The union leaders told the media after the meeting that their preference was for the Indian
company.

While Tata Motors seems to have done all the right things up until now, making the
acquisition fit with Tata’s strategy of developing low-cost cars for emerging markets won’t
be easy.

“Tata has done a good job in a difficult period,” said Prashant Kale, professor of strategy at
the Jones School of Management at the Texas-based Rice University. “But to me, this is more
of a standalone turnaround of JLR until now,” said Kale, who works with some Tata group
companies

“On the face of it, there seem to be limited operational synergies between JLR and Tata
Motors’ remaining passenger car business, given the difference in the primary segments they
cater to and the underlying value chain or business models of the two. How Tata Motors is
able to leverage those synergies would be interesting.”

Forster is of the view that more than synergy, the group will stress on entrepreneurial spirit.

While Speth says it is time to enjoy the fruit of the investment made in 2007-08, Forster,
careful not to appear complacent, says seeds “are being sown to be reaped in 2014.”

Tata Motors plans to pump £800 million-1 billion (Rs 5,728-7,160 crore) into JLR in the next
three-four years for product development, technology up gradation and capital expenditure
needs. The UK subsidiary, which contributes two-thirds of Tata Motors’ consolidated
revenue, has been generating a cash profit for the last four quarters. In the three months to
September, JLR made a cash profit of £351.9 million, up 12% from the year earlier.

With an eye to the future, JLR is setting up manufacturing assembly units in India and China,
the markets touted as the fastest growing in the world.

The Freelander, the cheapest of the sports utility vehicles from the Land Rover stable, will
start rolling out from the old Tata-Mercedes assembly plant near Pune next year. JLR is also
in advanced negotiations to set up a joint venture in China, Speth said, adding that this will
allow the company to reduce prices by 35%, making the vehicles more competitive.

“We can rethink our aspirations in China (a market with a size of 17 million cars) through
this JV,” Speth said.
Since the Tata Motors acquisition, JLR has been looking at the Bric (Brazil, Russia, India,
and China) nations with greater interest, he said. These nations account for 31% of sales and
the company wants to raise that to 37%. Speth expects China to account for 16% of the
company’s total sales over the next few years.

Why JLR?

 Long term strategic commitment to automotive sector

 Opportunity to participate in two fast growing auto segment
 Increased business diversity across markets and products
 Land rover provides a natural fit for TML’s SUV segment
 Jaguar offers a range of “performance/luxury” vehicles to broaden the brand portfolio
 Benefits from component sourcing, design services and low cost engineering.

TATA Motors- Other major international ventures of TATA Motors in recent past are
discussed below:

1. TATA Daewoo Commercial Vehicle-

In 2004, TATA Motors acquired the Daewoo Commercial Vehicle Company of South Korea.
TATA remains India's largest heavy commercial vehicle manufacturer and TATA Daewoo is
the2nd largest heavy commercial vehicle manufacturer in South Korea. The reasons behind
the acquisition were:

a) 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 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.

b) To expand the product portfolio TATA Motors 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 atan
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 Motors has jointly worked with TATA
Daewoo to develop trucks such as Novus and World Truck.

2. Hispano Carrocera-

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 with an option
to acquire 100% holding. Hispano Carrocera is an established and reputed bus and coach
manufacturer in Spain enjoying excellent reputation for developing high quality vehicles. It
operates in two manufacturing locations namely, Zaragoza in Spain and Casablanca in
Morocco, North Africa. Hispano has proven competence in development of buses and
coaches. With this deal Tata Motors acquired the license for technology and brand rights
from Hispano. The total deal consisting of equity, debt and technology licensing amounted to
about Rs 70 crore to Tatas. This partnership gives both companies an opportunity to use their
complementary strengths to create high-class transport solutions for intra-city and intercity
mass transportation in Spain, India and many other countries around the world. Besides Tata
Motors is also seeing this deal as a gateway into the highly competitive and matured
European markets considering the success Hispano's bus range enjoys in these markets.
Hispano enjoys a market share of 25 per cent in the bus market in Spain and sells
considerable numbers in Europe in addition to other countries outside Europe as well.
Further, the Hispano deal will help the Indian commercial vehicle giant grow in the bus and
coach segment as the Daewoo acquisition helped it in trucks. This strategic alliance with
Hispano Carrocera gave TATA Motors access to its design and technological capabilities to
fully tap the growing potential of this segment in India and other export markets, besides
providing it with a foothold in developed European markets.
3. TATA Marcopolo (TMML) -

TATA Motors has formed a 51:49 joint venture in bus body building with Marcopolo of
Brazil. 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. TATA
and Marcopolo have launched a low-floor city bus which is widely used by Delhi, Mumbai
and Bangalore Transport Corporations. TMML JV’s first assignment in India was to supply
500 premium class low floor buses for Delhi Transport Corporation. Joint venture has started
its operations at Dharwad, Karnataka & Lucknow, and U.P.

Future Plans:

TMML has plans to set up the world’s biggest bus plant at Dharwad. It is aiming to cater to
the fully built bus requirements of Indian mass as well as luxury markets. To compete in high
volume, low cost market a vendor park has been established in Dharwad itself. The company
plans to make 20,000 buses a year at its full capacity.

4. TATA Xenon-

TATA Xenon was released in late 2007. It was first displayed at the 2006Bologna Motor
Show. The car is assembled in Thailand by Tata-Thonburi JV and in Argentina by Tata-Fiat
JV. The Xenon has been well received in Europe especially in Spain and Italy. SPRINT was
the code name of the Project for development of Tata's World Pick-up (truck).World Pick-up
market (other than USA) is dominated by Japanese Auto majors like Toyota, Isuzu,
Mitsubishi, and Nissan. As per the study conducted by Tata Motors, there is a big opportunity
for TML to grab substantial market share of world Pick-up market. Tata initiated an in-depth
market study in various countries in Europe, Middle East, S Africa, Thailand, Australia, Latin
America etc. to understand needs of target segments for a new Pick-up. While a new product
development timeline takes between 36 to 50 months, it is said that so far only Toyota has
achieved the Timeline of 18 months. Hence, the name SPRINT which signifies and
continuously reminded project team about the Speed of the project. The team worked round
the clock relentlessly, applied principles of "Concurrent Engineering", distributed work load
in 9 different countries in order to crash timeline by overlapping maximum possible key
activities. The team delivered project in 17 months—from styling freeze in Dec 05 to SOP (
Start of Production) in May 7.Bologna Motor Show 2006 (Dec) was the occasion when
Xenon was unveiled for public display and later in March 2007, it was also displayed at
Geneva Motor Show 2007. Till date Xenon has been launched in 14 countries in Europe,
Middle East, Africa and SE Asia. Tata Motors signed a joint venture with Thonburi
Automotive Assembly Plant Co. (Thonburi), the Thailand-based independent assembler of
automobiles to manufacture, assemble and market pickup trucks in Dec’06. The joint venture,
in which Tata Motors holds70% of the equity and Thonburi 30%, gets vehicles manufactured
in Thonburi’s manufacturing facility. The joint venture facilitated Tata Motors address the
Thailand market, the second largest pickup market in the world after the US. Both partners
jointly manage the operations.
5. TATA Fiat-

The TATAs and Italian car giant Fiat kicked off their partnership with the former marketing
Fiat cars since Mar’06. Fiat branded cars are distributed by Tata through the Tata-Fiat dealer
network. The partnership took off to the next level in Dec’06 with both the sides announcing
the formation of a joint venture with aggregate investments of over Rs 4000 crore (over euro
665million) in a phased manner to manufacture vehicles for the Indian and overseas markets.
The 50:50 joint venture enabled Fiat plant at Ranjangaon, Pune with capacities to produce in
excess of 200,000cars and 300,000 engines and transmissions yearly, at steady state. The JV
may be expanded to produce trucks as well.

This strategic alliance with Fiat enables the two companies jointly to present a wider range of
product offerings to the Indian market. It enables Tata Motors to access world-class
powertrains from Fiat for its next generation car offerings while enhancing the model line
atits dealerships. Fiat’s Ranjangaon manufacturing facility is benchmarked against the global
car manufacturer’s units in Turkey and Brazil. It compares well as the lowest-cost
manufacturer, and Fiat will eventually source right-hand drive Linea cars from here for the
UK and Australia. Fiat has a cost advantage of 14-17% over Brazil and Turkey due to
localisation of parts and labour costs. Fiat had almost decided to quit the Indian market but
for Fiat chief executive officer Sergio Marchionne and Tata group chairman Ratan Tata
coming together in 2005. Such was the level of confidence among both the partners that
investments began at least two years before even a formal agreement was signed. JV is
already producing the Fiat-Palio, Stile and Linea models and select Tata Indica models.

Future Plans:

The company is readying to launch the Grande Punto, a compact car, in the third quarter of
the fiscal year-2009-10. The second model will be Tata Motors’ new three-box offering,
code-named X1. Planned launch of the Fiat Bravo is being delayed because of the economic
slowdown. Fiat manufactures Tata Motors’ 1-tonne pick-up truck at its plant in Argentina for
Latin American and overseas markets. The JV is expected to break even by 2011-12.

6. City Rover-

The City Rover was a hatchback car model offered by MG Rover Group in the UK market.
Launched in the autumn of 2003, the car was a rebadged version of the Tata-Indica. MG
Rover group used to import TATA Indica from India and sold as City Rover in UK market.
The City Rover's running costs were rather high, and its asking price was high compared with
newer, better built and better specified rivals such as the Fiat Panda. MGR over was reported
to be paying Tata £3,000 for each car and, despite each model featuring a Rover corporate
nose and revised suspension settings, the buying public was not impressed by the £7,000
starting price. Along with the rest of the MG Rover range, production of the City Rover
ended in April 2005 when the company went into receivership, the last vehicles brought into
the UK being purchased and sold on by a non-franchised discount dealer group. Although
MG Rover was bought by Nanjing Automobile of China in July 2005, the company's new
owners did not include the City Rover or indeed any direct successor in their plans for a new
model range. This was one of the unsuccessful attempts of Tata Motors to go global.

7. Exports Market (CV) - TATAs export its commercial vehicles to neighbouring Asian
countries like Nepal, SriLanka, Bangladesh, and Afghanistan apart from South Africa and
Middle East markets. It competes with the likes of Mercedes, Volvo, and Hyundai etc. in
Middle East markets.

8. World Truck-

TATA Motors unveiled its ‘World Truck’ range, developed jointly with TATA Daewoo
Commercial Vehicles of South Korea in May’09. The developing infrastructure in India
makes it possible for transporters to reap the benefit of trucks with higher power, speed and
carrying capacity. The new range from Tata Motors will meet those needs. It will also help it
penetrate international markets more effectively and competitively.

Future Plans:

The commercial launch of these trucks in India is scheduled during July-September’09. They
will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the
end of the fiscal. The trucks will be made at the Jamshedpur facility and at Gunsan in South
Korea. The company expects international volumes to be at par with numbers in India.

9. TATA Nano-

Conceived in 2003, Tata Motors had launched the much- hyped 'cheapest' car in India
inMar’09. The car has cost over Rs 2,000 crore to the company. 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". For the first
time, thanks to Tata's Nano, India has been established as an R&D leader, and not just a low-
cost hub known for cheap labor. It has shown to the world that India can be a technology
leader. It is a great innovation, because innovation is all about thinking of the next decade and
not the next quarter. The Tata Nano will certainly find big takers in India. However, it can
have a market in the US, as well. If the car is enriched with high technology functions to
make it an intelligent car, many in the US will look forward to own it. An intelligent car at
$3000 would be a good bargain after all, for many Americans. Tata's Nano shows that there
is a huge opportunity for Indian companies to build profitable low-cost products and then
take them to the US.

Future Plans:

Tata Motors will be launching it in Nigeria within the next year and a half. In Nigeria, the
Nano will cost 357,480 NGN (Rs 1.16 lakh), almost the same as its cost in India, making it
cheaper than even used cars in the country. According to TATA Motors officials, Nano will
greatly benefit Nigerians as there is no proper public transport system in the country.
Company is yet to decide whether the car would be assembled in Nigeria itself or if it would
be made available as a Completely Built Unit (CBU). The company is planning to market
Nano in other countries, but timelines, modes and countries are yet to be finalized. Earlier
this year, the Tata Nano Europa (the European version of the Nano) was unveiled at the
Geneva Auto Show. The Nano Europa will be launched in 2011.

37 patents – IPR protection for Nano – (source ET)

In a bid to protect Nano car against imitation by competitors, Tata Motors has already applied
for patent protection. "As far as the Tata Nano is concerned, 37 inventions have been filed
for patent protection so far to cover all the innovations in the car. We are also considering
filing IPs on Nano in overseas locations at an appropriate time. Most of the patent
applications filed before 2007 have already been granted. Further, nearly one-fifth of the
patent applications are in the process of getting protection in other countries based on the
marketing portfolio, scope of invention and costs involved in protection and enforcement," a
company spokesperson told The Economic Times.

Tata Motors has been learned to have filed more than 400 patents and design applications
for its various vehicles and processes.

The company is also close to filing intellectual property rights (IPRs) claims for Nano in
overseas markets, company officials said. The patents will help Tata Motors protect some of
its innovative ideas used in developing the car, say officials close to the development. The
move is also expected to help the company sell the car in markets such as Africa, Southeast
Asia, Eastern Europe and Latin America.

Company sources said in addition to the design, Tata Motors has put in a lot of effort to
develop components to reduce costs and make the rear-engine driven vehicle fuel-efficient.
Other global and local auto companies have announced plans to develop a similar low-priced
vehicle for the Indian roads ever since the Tata group announced its plans.

Analysts said it made sense for the Tata’s to seek global patents, given their international
business growth strategy. "Increasingly, there will be a lot of awareness and sensitivities
involved around technology and the manner of presentation in a competitive market," they
said.

TATA MOTORS EXPORTS (2013-14 – Annual report Analysis)

For Tata Motors, traditionally strong markets in South Asia such as Bangladesh and Sri-
Lanka were affected by internal conflict, political Unrest and regulatory changes, especially
in first half of FY 2013-14.

While sales partially rebounded in second half of FY 2013-14 in Bangladesh and Nepal as a
net result, export sales of the Company de-grew by 2% to 49,922 vehicles comprising 43,083
units of CVs and 6,839 units of PVs. With a view to expand its International Business, the
Company has entered new markets like Australia and Indonesia and has also prepared to
enter Malaysia and Philippines in early FY 2014-15.
The Company introduced a host of new products on existing and new platforms in existing
and new markets and showcased its vehicles in major auto shows in strategically important
markets.

The Company continued to outperform competition in terms of exports of Commercial

Vehicles and enjoyed a total CV exports share of 57% in FY 2013-14. Shipments for M &
HCV Trucks grew by 34% in FY 2013-14 contributing significantly to the top line and the
bottom line of the company. The shipments of SAARC countries and RHD African
countries including South Africa, Kenya, Tanzania, Mozambigue and Zambia grew by

6% and 12% respectively. The opening of new markets in Australia and Indonesia made up
for some of the shortfall in the Middle East and LHD Africa countries.

The Company exported 6,839 Passenger Vehicles. Indica grew (29%),

Indigo grew (70%) led by Bangladesh, Safari Storme had a strong debut with 115% growth
and Sumo showed steady performance ( 2.2%) and was the best-selling vehicle name-plate in
Nepal. Tata Passenger vehicles debuted in Philippines and Brunei and also witnessed regular
orders from Indonesia.

The Company was awarded the EEPC ''Star Performer Award'' for outstanding contribution
in Engineering Exports in the Motor Vehicle – Large Enterprise category. Members attention
is also drawn on various export initiatives under ''Foreign Exchange Earnings and Outgo'' in
the Annexure.

JAGUAR LAND ROVER

Jaguar Land Rover (JLR) had a successful year of continued growth in all markets with
overall volumes up by 16%, reflecting continued product successes including the launch of
the new Range Rover Sport and Jaguar F-TYPE and a full year of sales of the new Range
Rover. More established models have also been performing well, in particular derivatives
such as the XF Sport brake and all-wheel drive and smaller engine options across the range.
Retail volumes have grown across all markets, led by China up by 34% from last year to
record retail sales of 103,077; North America and Asia Pacific regions also performed
strongly, up by 20% and 28% to 75,671 and 22,795 respectively; UK and Europe, partly
reflecting the economic headwinds, showed more modest growth, up by 6% and 2% to
76,721 and 82,854 units respectively. Wholesale volumes for FY 2013-14 were 429,861
units, an increase of 16% on FY 2012-13. At a brand level, wholesale volumes were 79,307
units for Jaguar and 350,554 units for Land Rover, reflecting growth of 37% and 11.6%
respectively. Some of the highlights of this year’s performance were:

Launch of the all new aluminium Range Rover Sport in March 2013, with a worldwide roll
out in the first half of FY 2013-14

Continued growth of the expanded Jaguar XF range with all- wheel drive Version, new Sport
brake and smaller and more fuel efficient engine options for the XF and XI, launch of the
new Jaguar F-TYPE.

The F-TYPE went on sale to retail customers from April 2013 onwards and since then has
received numerous awards and appreciation by the auto media. In November 2013, Jaguar
unveiled the F-TYPE Coupe which went on sale in Apri 2014. In 2013, the F-TYPE won
Germany’s most prestigious automotive award, the Golden Steering Wheel and the “World
Car Design of the Year" award, as well as the "Convertible of the Year" award from Top
Gear.

At the Frankfurt Motor Show in September 2013, Jaguar revealed its first ever crossover
concept vehicle, the Jaguar C XI7, based on a new modular scalable advanced aluminum
architecture, which will allow Jaguar to grow its product portfolio and target high growth
areas of the premium market, beginning with a new mid-sized sedan in 2015. It later
announced that the new mid-sized sedan will be named "Jaguar XE" at the Geneva Auto
show in March 2014 and this will be launched in early 2015.

The new "Discovery Vision" Concept car was unveiled at New York International Auto
Show in April 2014. Land Rover Discovery Sport (Freelander replacement) was announced
as first new member of Discovery family to be launched in late 2014.

Jaguar Land Rover’s joint venture with Chery Automobiles, China has been progressing well
to develop, manufacture and sell certain Jaguar and Land Rover vehicles and jointly branded
vehicles for the Chinese market. The production will start in FY 2014-15.

Continued investment in new state-of-the-art facility at Wolverhampton,

UK, to manufacture new advanced low emission engines from FY 2014-15.

The Company and Jaguar Land Rover participated in various international auto shows
displaying its range of products, including at Geneva, New York, Detroit and Jakarta,
wherein the displayed products won accolades and a positive response.

In addition, JLR has also committed to a manufacturing facility in the

State of Rio de Janeiro, Brazil.

Further, JLR has signed a Letter of Intent with the National industrial

Clusters Development Program (NICDP) in the Kingdom of Saudi Arabia for set-up of an
automotive facility

Tata Daewoo Commercial Vehicles Company Limited

Tata Daewoo Commercial Vehicles Company Limited (TDCV) sold 10,600 vehicles, higher
by 5% over FY 2012-13. TDCV Domestic sales were at 6,584 vehicles, 2nd highest in its
history, registering a growth of 21.9% compared to 5,400 vehicles sold in previous year.
However, in Export market sales at 4,016 vehicles was lower by 14.6% compared to 4,700
vehicles of last year mainly due to adverse economic conditions in global markets.

Tata Motors (Thailand) Limited

Tata Motors Thailand Limited (TMTL) sold 2,480 vehicles in the FY 2013-14, a year which
saw the automotive market in Thailand drop over the previous year by almost 24%. The
Super Ace vehicles that are currently sold as CBU imports from India showed encouraging
signs of acceptability in the market. TMTL continued to expand its dealer network in order to
cover most of the provinces in the country TMTL also dispatched the first lot of test vehicles
to Malaysia where regular exports of Xenon are planned beginning FY 2014-15.

Tata Motors (SA) (PTY) Limited

Tata Motors (SA) (Pty) Ltd (TMSA) sold 821 chassis for the South Africa market in FY
2013-14. TMSA homologated three new models in the LCV category, including a bus chassis
LP713 for the first time. It also collaborated with TDCV to assemble a pilot lot of 6 chassis
of a tractor truck model with the objective of expanding the TATA presence in the fastest
growing (extra Heavy) segment of commercial vehicles in South Africa.

Work Culture at TATA MOTORS

HUMAN RESOURCES

The Tata Motors Group employed 66,593 permanent employees (previous year: 62,873
employees) as of the year end, out of which 59,535 employees were engaged in automotive
operations. The Company employed 29,566 permanent employees (previous year: 30,334
employees) as of the yearend. The Tata Motors Group has generally enjoyed cordial relations
with its employees and workers.

All employees in India belonging to the operative grades are members of labour unions
except at our Sanand and Dharwad plants. All the wage agreements have been renewed in a
timely manner and are all valid and subsisting. Operatives ''and Unions'' support in
implementation of reforms that impact quality, cost erosion and improvements in productivity
across all locations which is commendable.

Safety and Health - Performance and Initiatives

The Company provides a safe and healthy workplace for its employees by establishing the
right safety culture across the organization. The senior leadership is fully committed to the
ultimate Goal of zero injury to its employees and all stakeholders who are associated with the
Company’s operations. Emphasis is laid on creating a participatory safety governance model.
Safety and Health Environment (SHE) Councils have been formed for both Commercial
Vehicle business and Passenger Vehicle business. The Company has come up with Safety
Manual for Fully Built Vehicle (FBV) Application Vendors. The Lost Time Injury
Frequency Rate (LTIFR) for this year is 0.39%, a reduction of 44% over FY 2012-13.
Training and awareness among all concerned has been a key element of the strategic
initiative. 5, 07,738 man-hours of training have been spent on Safety. The Company has
launched a campaign ' 'i-drive safe'' - A Tata Motors initiative on building a safe driving
culture and also training of driver employees with an awareness that the main risk is related
to road safety and thereby ensured safe driving behavior of the drivers. The Company
launched health brand logo ''HealthPlus - Because you matter!'' to drive employee health
initiatives. Series of initiatives like awareness sessions, mailers, etc. Have been conducted
under this initiative. The Company has come up with a Health and Wellness manual.

The Jaguar Land Rover business has recently restated its commitment of Safety and well-
being. The philosophy of this commitment states that the company strives to continuously
improve working conditions and promote safe working practices to ensure the safety and
well-being of its employees and the wider communities which it engages with. 2013 saw the
launch of Jaguar Land Rover’s strategic direction on Safety and well-being, Destination Zero
- A Journey to Zero Harm. The activities to deliver Zero Harm are underpinned with
everyone understanding and taking a responsibility for their own and their fellow workers
safety and well-being. Health promotion activities take place at all Jaguar Land Rover
locations, the active use of' 'WellPoint Kiosks'' during FY 2013-14 was well received.

At TDCV Korea, the accident rate was 1.23% as against 0.18% achieved last year. The
increase in accident rate is on account of Muscular Disease which TDCV is incorporating
from this year as directed by government body. The safety index was 2.74 against 2.09
achieved last year. TMTL, Thailand, completed more than two years of accident free
operations. Safety Assessment and Safety Training (on Safety

Observations and Leading Safety Efforts) were conducted in Korea and

Thailand in June 2013. At TMSA, South Africa, a comprehensive Health & Safety Manual
was released, which had the Health & Safety policy, all SOP''s (Standard Operating
Procedures), contingency plans, etc. for

TMSA. Safety audits have been initiated with involvement of management employees which
is being conducted by an external agency, NOSA.

The Company has continuously endeavoured towards improving gender diversity and
creating a safe, just and fair workplace for its employees. The "Sexual Harassment Avoidance
and Redressa Policy (SHAR)" of the Company is in line with the Tata Code of Conduct and
under this Policy an Apex committee at the corporate centre and location specific committees
at local level, have been formed with set guidelines to address issues of sexual harassment at
the work place towards any woman associates. The Company is committed to providing
equal opportunities without regard to their race, caste, sex, religion, colour, nationality,
disability, etc. All women associates (permanent, temporary, contractual and trainees) as well
as any women visiting the Company’s office premises or women service providers are
covered under this policy. All employees are treated with dignity with a view to maintain a
work environment free of sexual harassment whether physical, verbal or psychological.

During the year FY 2013-14, the Company has received 20 complaints on sexual harassments
and of which 19 were disposed off. 17 cases from these have been substantiated and
appropriate action taken. 32 workshops or awareness program were carried out against sexual
harassment. (Source _ ET).

TECHNOLOGY AND ENVIRONMENT FRIENDLY INITIATIVES

The Tata Motors Group continues to innovate, with a view to enhance the market share and
aims at products which cater to the changing needs of the customer for both fleet owners and
individual customers. Besides new product developments covered above, some of the key
initiatives on Environment friendly technologies include:

 Fuel efficiency improvement through development of advanced driveline oil

formulation in line with previous development of engine oil only
 Continuation of fuel efficiency improvement initiatives on commercial vehicle
engines through software features in engine management system and vehicle level
parameter optimization.
 Downsizing of gasoline engines using pressure charging technology (turbochargers)
for Co2 reduction on passenger cars.
 Designed and developed electric vehicles based on Tata Magic and Tata Iris, which
were demonstrated in Auto expo 2014. A fleet of small number of demonstrator
vehicles is being developed.
 Start of a collaborative initiative to investigate sustainable synthetic fuels for India
and developing nations.
 Designed, developed and demonstrated Hydrogen fuelled zero emission fuel cell bus
for urban transportation. Further testing is in progress.
 Use of bio CNG in internal combustion engines for vehicles is under testing.
 Unveiling the latest milestone of its advanced aluminium which would be high-
strength, lightweight and the Jaguar Land Rover’s most aluminium intensive structure
to date bringing considerable benefits in terms of dynamics, safety and efficiency.
 Jaguar Land Rover introduced world’s first hybrid electric vehicle with a diesel
engine by bringing down fuel consumption to 6.41/100 km. which only few years ago,
seemed to be totally unachievable in a vehicle size of Range Rover.

 Introduction of In Control Apps in the Cars manufactured by Jaguar Land Rover to

minimize driver distractions.
 Collaborative innovation through Investment in a new UK advanced research facility,
the National Automotive Innovation Centre providing dedicated facilities for an
expanded Jaguar Land Rover Advanced Research Team.

Achievements/ recognition:
 Tata Motors among India’s most Trusted Brand in cars
 Tata Motors wins award at the Bangkok International Motor Expo
 Tata Motors – Investor Relations ranked first in India
 Nirmal Gram Puraskar awarded to Potka panchayat.
 Tata Motors bags the NDTV Profit Business Leadership Award 2008
 Tata Motors awarded the Top Exporter Trophy by EEPC
 CVBU Pune wins Rajiv Gandhi National Quality Award for 2007.
 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 Design'
 Tata Motors Pune – CVBU has bagged the 'Golden Peacock National Quality
Award
 Tata Motors was awarded four prestigious honours, at the 'CNBC TV18– Autocar.
 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.
 Jamshedpur bags National Energy Conservation Award for the fourth consecutive
year. Tata Motors bags the prestigious' CII–EXIM Bank award' for business
excellence.
 Tata Motors receives JRD QV awards for Business Excellence.
 'Car Maker of the Year' Award for Tata Motors.
 Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.
 TNS Voice of the Customer Award for Indica Diesel.
 'CFO of the Year Award 2004' awarded to Mr Praveen P Kadle, Executive
Director
 Tata Motors wins the prestigious 'Corporate Platinum' Award Tata Motors wins
'Golden Peacock Award' for Corporate Social Responsibility.
 Tata Motors CVBU Pune wins National Energy Award.
 Tata Motors – Jamshedpur wins 'Energy Efficient Unit Award'.
 Tata Motors wins the first CSIR Diamond Jubilee Technology Award.
 Tata Motors Training Division Wins 'Golden Peacock National Training Award
2004'.
 Tata Motors case study wins first prize in iiie productivity contest.
 Tata Motors wins award for fair business practices.
 Tata Indica and Tata Safari EXi win awards.
 Tata Motors–Car plant gets two ISO certifications.
 Tata Motors bags awards at 14th National Convention of INSAAN
 Indica and Safari win accolades
 Tata Motors pune awarded second place in national level competition in energy
co.
 Tata Motors Receives 'India's Best Employer' Award from the Employee.
  Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award
institute
 CVBU receives commendation certificate for 'strong commitment to TQM'.
 Tata Motors team wins The Runners up Position at The Asian Business
Simulation
 The Prestigious Balanced Scorecard Collaborative Hall Of Fame Award
 Tata Motors receives all India trophies for Top Exporters
 Tata Indigo ad campaign wins Effie award
 Golden Peacock Environment Management Award – 2003
 Industry and Technology Award, 2002

Envirointernational:

 Good Corporate Citizen award

 National Award for Successful Commercialisation of Indigenous Technology
 National Award for R&D Efforts
 Regional Top Exporter's Trophy
 Best Company Award at Works kills Competition
 EEPC Award for Tata Engineering

COUNTRYWISE ANALYSIS FOR TATA MOTORS:

Tata Motors has been exporting its products since 1961. Currently, the company's
commercial and passenger vehicles are being marketed in 30 countries across  Europe,
the Middle East, South America, Russia, CIS, South East Asia, Far East, SAARC,
Australia and Africa. Through subsidiaries and associate companies, Tata Motors has
operations in the UK, South Korea, Thailand, Spain, South Africa, Indonesia and
franchisee/joint venture assembly operations in Bangladesh, Ukraine, Senegal. Over the
years, Tata Motors has emerged as a global and truly a multinational automobile company
with its winning products in international markets and manufacturing bases in many
countries.
 Ease
of Dealing
Doing Starting with Gettin Regist Getti Resolvin
Busin a Constru g ering ng Protectin Payin Trading g
ess Busines ction Electri Proper Credi g g Across Enforcing Insolven
Economy Rank s Permits city ty t Investors Taxes Borders Contracts cy
Korea,
Rep. 7 34 18 2 75 13 52 25 3 2 15
United
Kingdom 10 28 27 74 68 1 10 14 16 56 7
Australia 11 4 10 34 40 3 68 44 46 14 18
Thailand 18 91 14 12 29 73 12 70 24 22 58
Japan 27 120 91 26 66 28 16 140 23 36 1
South
Africa 41 64 26 150 99 28 10 24 106 80 82
Spain 52 142 98 62 60 55 98 67 32 59 22
Italy 65 90 112 89 34 109 52 138 56 103 33
Sri Lanka 85 54 108 91 145 73 52 171 51 135 59
Morocco 87 39 83 97 156 109 115 78 37 83 69

Russian
Federation 92 88 178 117 17 109 115 56 157 10 55
China 96 158 185 119 48 73 98 120 74 19 78
Nepal 105 97 105 98 24 55 80 126 177 139 125
Ukraine 112 47 41 172 97 13 128 164 148 45 162
Brazil 116 123 130 14 107 109 80 159 124 121 135
Banglades
h 130 74 93 189 177 86 22 100 130 185 119
India 134 179 182 111 92 28 34 158 132 186 121
Mozambiq
ue 139 95 77 171 152 130 52 129 131 145 148
Senegal 178 110 165 182 174 130 170 182 80 167 122
 CORRUPT GLOBAL VOICE
HUMAN
ION BRIBE FINANCIAL OPEN COMPET PRESS JUDICIAL &
COUNT DEVELO
PERCEPTI PAYERS SECRECY BUDGET ITIVENE FREEDOM INDEPEN ACCOU
RIES PMENT
ONS INDEX INDEX INDEX SS INDEX DENCE NTABIL
INDEX
INDEX INDEX ITY

BUDGET PERCE
OPENNE NTILE
INDIA RANK: RANK: RANK: SS: RANK: RANK: RANK: RANK: RANK:
SIGNIFIC
94/177 19/28 25/71 ANT 134/187 59/142 131/179 51/142 59%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
36/100 7.5/10 53 67 0.547 4.32/7 58 4.3/7 0.424
VALUE:
344
THAILA BUDGET PERCE
ND OPENNE NTILE
RANK: SS: RANK: RANK: RANK: RANK: RANK:
102/177 SOME 103/187 38/142 137/179 55/142 30%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
35/100 42 0.682 4.52/7 61.5 4.2/7 -0.5578
BUDGET PERCE
RANK: RANK: RANK: OPENNE RANK: RANK: RANK: RANK: NTILE
South SIGNIFIC
Korea 46/177 13/28 28/71 ANT 15/187 19/142 44/179 69/142 69%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
55/100 7.9/10 54 71 0.897 5.12/7 12.67 3.8/7 0.7085
VALUE:
317.2
BUDGET PERCE
OPENNE NTILE
SPAIN RANK: RANK: RANK: SS: RANK: RANK: RANK: RANK: RANK:
SIGNIFIC
40/177 011/28 53/71 ANT 23/187 36/142 39/179 65/142 86%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
59/100 8.0/10 34 63 0.878 4.60/7 9.75 3.9/7 1.1408
VALUE:
98.8
BUDGET PERCE
OPENNE NTILE
BRAZIL RANK: RANK: SS: RANK: RANK: RANK: RANK: RANK:
SIGNIFIC
72/177 14/28 ANT 84/187 48/142 99/179 71/142 64%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
42/100 7.7/10 71 0.718 4.40/7 35.33 3.7/7 0.4992
 CORRUPT GLOBAL VOICE
HUMAN
ION BRIBE FINANCIAL OPEN COMPET PRESS JUDICIAL &
COUNT DEVELO
PERCEPTI PAYERS SECRECY BUDGET ITIVENE FREEDOM INDEPEN ACCOU
RIES PMENT
ONS INDEX INDEX INDEX SS INDEX DENCE NTABIL
INDEX
INDEX INDEX ITY
BUDGET PERCE
OPENNE NTILE
ITALY RANK: RANK: RANK: SS: RANK: RANK: RANK: RANK: RANK:
69/177 15/28 35/71 SOME 24/187 42/142 61/179 60/142 76%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
43/100 7.6/10 49 58 0.874 4.46/7 19.67 4.0/7 0.9274
VALUE:
231.2
BUDGET PERCE
INDON PERCENTIL OPENNE NTILE
ESIA RANK: RANK: E RANK: SS: RANK: RANK: RANK: RANK: RANK:
114/177 25/28 27% SOME 124/187 50/142 146/179 76/142 48%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
32/100 7.1/10 -0.7273258 51 0.617 4.40/7 68 3.6/7 -0.0553

SOUTH PERCE
AFRIC NTILE
A RANK: RANK: BUDGET OPENNESS:
RANK: RANK: RANK: RANK: RANK:
72/177 15/28 EXTENSIVE123/187 52/142 42/179 35/142 65%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
42/100 7.6/10 92 0.619 4.37/7 12 5.0/7 0.5264
UNITE
D BUDGET PERCE
KINGD OPENNE NTILE
OM RANK: RANK: RANK: SS: RANK: RANK: RANK: RANK: RANK:
EXTENSI
14/177 008/28 13/71 VE 28/187 8/142 28/179 11/142 92%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
76/100 8.3/10 45 87 0.863 5.45/7 2 6.2/7 1.3129
VALUE:
516.5
PERCE
AUSTR NTILE
ALIA RANK: RANK: RANK: RANK: RANK: RANK: RANK:
9/177 006/28 2/187 20/142 30/179 13/142 95%
SCORE: SCORE: SCORE: SCORE: SCORE: SCORE: SCORE:
81/100 8.5/10 0.929 5.12/7 4 6.1/7 1.4289
ANALYSIS:

1. TATA MOTORS are exporting to SAARC Nations only because of geographical

advantages in trades & less tariff rates (20% less tax) since 1998 ( after formation of
SAPTA)
2. TATA MOTORS entered into various countries across the globe to cover worldwide
area. Spain – Brazil – Thailand – South Africa are not like to ‘easy to business
countries’ yet TATA having manufacturing units to cover the globe. Trading across
borders is very easy for these countries.
3. TATA Entered into European market through Spain. Yet because of image of low
quality producer, was not successful in UK. Acquisition of JLR was need for TATA
to enhanced image globally.
4. JLR acquisition helped TATA to access high end technology as well as qualified staff
of JLR. Today JLR is profit making business unit for TATA motors.
5. TATA is targeting low income countries – for Passenger cars & commercial vehicle
markets. South Africa is best locations selected by TATA for targeting low income
countries. Daewoo TATA merger is cash cow for TATA in that region.
6. TATA motors has entered in JAPAN via investing into Construction Company. As
JAPAN market is highly competitive for Automobile business. Hence unrelated
diversification is observed here.
7. TATA will expand in Australia, hence slowly increasing business through Thailand to
Indonesia & Malaysia.
8. At Initial stage TATA entered into all low income countries where ‘ease of business
index’ was very low to capture untapped low income market. Now with current trends
TML is targeting developed countries. UK, Australia etc.
9. Tata Motors is looking to start filling Indonesia’s streets with its products later this
year in an attempt to make Indonesia its biggest overseas market in the next four
years. The firm, which now has six dealers and around 30 to 40 workshops across
Java and Bali, expects to have 10 dealers to help its operations by the end of this year
and to have built 35 dealerships to cater to potential customers within five years. This
will help to develop Australian market for TATA product.
10. TATA has aligned the international business to the two business units — the
Passenger Car Business Unit (PCBU) and the Commercial Vehicle Business Unit
(CVBU). The Business Units have classified different markets in terms of size,
 growth opportunities, product segments and target volumes. Therefore, from being
present as an exporter in 70 countries, the company today focuses on 15 to 20 key
countries, where it will have a significant presence in terms of volumes and market
shares.
11. On the road to globalisation, the Rover agreement has been an important step in
helping Tata Motors to gain very quick access to a fairly large market and a large
distribution network. Working alone in this area would have taken us much longer to
create a distribution network.
12. Upcoming challenge for TATA motors is launching NANO into international market
for both – low income country market & developed countries in two versions of
NANO & NANO pixel.
13. TATA had been capturing opportunity over the globe for joint ventures. This is
prominent market entry strategy followed by TATA Motors. Also for newer Market
dealership strategy is implemented (ex. Indonesia).
14. Tata Motors plans to increase dealership base to 70+ in Thailand over the next year
while the company will also concentrate on import of commercial trucks from South
Korea and India. Tata Motors also hopes that the middle class in Thailand will find
the Nano, world’s cheapest car highly attractive once it is launched.
15. Ease of getting credit in UK was smartly used by TATA Motors for supporting JLR at
time of global recession.
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turned-JLR-around.html

http://www.marketbusting.com/casestudies/archives/Tata%20Motors.pdf

http://profit.ndtv.com/stock/tata-motors-ltd_tatamotors/reports

http://www.motorindiaonline.in/cover-story-2/tata-motors-ready-to-take-on-global-
competition/

Secondary Data:

TATA Motors Annual report – 2013-2014 & 2003-04, 2008-09.

TATA MOTORS – NDTV Profits