HISTORY OF TATA

MOTORS

• Tata Motors was founded in 1945, as a

locomotive manufacturer. Tata Group entered
the commercial vehicle sector in 1954 after
forming a joint venture with Daimler-Benz of
Germany in which Tata developed a
manufacturing facility in Jamshedpur for
Daimler lorries.By November 1954 Tata and
Daimler manufactured their first goods carrier
chassis at their Jamshedpur plant with 90-100
hp and capacity of 3-5 tons.After years of
dominating the commercial vehicle market in
India, Tata Motors entered the passenger
vehicle market in 1991 by launching the Tata
Sierra, a sport utility vehicle based on the Tata
Mobile platform. Tata subsequently launched
the Tata Estate (1992; a station wagon design
based on the earlier Tata Mobile). the Tata
Sumo (1994, a 5-door SUV) and the Tata Safari
(1998).

4
 INTRODUCTION

• Tata Motors has auto manufacturing and

vehicle plants in Jamshedpur, Pantnagar,
Lucknow, Sanand, Dharwad, and Pune in India,
as well as in Argentina, South Africa, the
United Kingdom, and Thailand. It has research
and development centres in Pune,
Jamshedpur, Lucknow, Dharwad, India and
South Korea, the United Kingdom, and Spain.
Tata Motors is listed on the BSE (Bombay Stock
Exchange), where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of
India, and the New York Stock Exchange. The
company is ranked 265th on the Fortune
Global 500 list of the world's biggest
corporations as of 2019.On 17 January 2017,
Natarajan Chandrasekaran was appointed
chairman of the company Tata Group. Tata
Motors increased its UV market share to over
8% in FY2019.

5
 OPERATIONS

• Tata Daewoo (officially Tata Daewoo Commercial

Vehicle Company and formerly Daewoo
Commercial Vehicle Company) is a commercial
vehicle manufacturer headquartered in Gunsan,
Jeollabuk-do South Korea, and a wholly owned
subsidiary of Tata Motors. It is the second-largest
heavy commercial vehicle manufacturer in South
Korea and was acquired by Tata Motors in 2004.
The principal reasons behind the acquisition were
to reduce Tata's dependence on the Indian
commercial vehicle market (which was responsible
for around 94% of its sales in the MHCV segment
and around 84% in the light commercial vehicle
segment) and expand its product portfolio by
leveraging on Daewoo's strengths in the heavy-
tonnage sector.Tata Motors has jointly worked with
Tata Daewoo to develop trucks such as Novus and
World Truck and buses including GloBus and
StarBus. In 2012, Tata began developing a new line
to manufacture competitive and fuel-efficient
commercial vehicles to face the competition posed
by the entry of international brands such as
Mercedes-Benz, Volvo, and Navistar into the Indian
market.

6
• Tata Hispano: Tata Motors Carrocera, S.A. was a
bus and coach manufacturer based in Zaragoza,
Aragon, Spain, and a wholly owned subsidiary of
Tata Motors. Tata Hispano has plants in Zaragoza,
Spain, and Casablanca, Morocco. Tata Motors first
acquired a 21% stake in Hispano Carrocera SA in
2005, and purchased the remaining 79% for an
undisclosed sum in 2009, making it a fully owned
subsidiary, subsequently renamed Tata Hispano. In
2013, Tata Hispano ceased production at its
Zaragoza plant.

• TML Drivelines Ltd. is a wholly owned subsidiary of

Tata Motors engaged in the manufacture of
gearboxes and axles for heavy and medium
commercial vehicles. It has production facilities at
Jamshedpur and Lucknow. TML Forge division is
also a recent acquisition of TML Drivelines. TML
Drivelines was formed through the merger of HV
Transmission and HV Axles .

7
• Tata TechnologieseditTata Technologies Limited
(TTL) is a 43%-owned subsidiary of Tata Motors
which provides design, engineering, and business
process outsourcing services to the automotive
industry. It is headquartered in Pune's Hinjawadi
business district and also has operations in
London, Detroit and Thailand. Its clients include
Ford, General Motors, Honda, and Toyota.The
British engineering and design services company
Incat International, which specialises in
engineering and design services and product
lifecycle management in the automotive,
aerospace, and engineering sectors, is a wholly
owned subsidiary of TTL. It was acquired by TTL in
August 2005 for ₹4 billion.In 2017, TAL, a
subsidiary of Tata Motors, manufactured India's
first industrial articulated robot for micro, small,
and medium enterprises

• European Technical CentreeditThe Tata Motors

European Technical Centre (TMETC) is an
automotive design, engineering, and research
company based at WMG, University of Warwick on
the campus of the University of Warwick in
England. It was established in 2005 and is a wholly
owned subsidiary of Tata Motors. It was the joint
developer of the World Truck.[36]In September
2013, it was announced that a new National
Automotive Innovation Campus would be built at
WMG at Warwick's main campus at a cost of £100
million.

8
 SUBSIDIARIES

Jaguar Land Rover: Jaguar Land RoverLand Rover

DefenderLand Rover DefenderJaguar Land Rover PLC
is a premium British automaker headquartered in
Whitley, Coventry, United Kingdom, and has been a
wholly owned subsidiary of Tata Motors since June
2008, when it was acquired from Ford Motor
Company of USA.Its principal activity is the
development, manufacture and sale of Jaguar luxury
and sports cars and Land Rover premium four-wheel-
drive vehicles.Jaguar Land Rover has two design
centres and three assembly plants in the United
Kingdom. Under Tata ownership, Jaguar Land Rover
has launched new vehicles including the Range Rover
Evoque, Jaguar F-Type, the Jaguar XE, the Jaguar XJ
(X351), the second-generation Range Rover Sport,
and Jaguar XF, the fourth-generation Land Rover
Discovery, Range Rover Velar and the Range Rover.
• JD Power, of the US, rates Land Rover and Jaguar
as the two worst brands for initial quality. [41] The
Jaguar F-Pace made Consumer Reports February
2019 list of the 10 Least Reliable Cars. The editors
cited "electronics, drive system, power equipment,
noises and leaks" as problematic aspects.[42]The
Jaguar Land Rover subsidiary was struggling by
2019 and Tata Motors wrote down its investment
in JLR by $3.9 billion. Much of the financial
problem was due to a 50% drop in sales in China
during 2019, although the situation was improving.
Still, Tata was open to considering a partnership
with another company according to a statement in
mid-October, as long as the partnership agreement
would allow Tata to maintain control of the
business. The company ruled out the possibility of
a sale of JLR to another entity.[43]In July 2023, Tata
announced its plans to build an electric car battery
factory in the UK, which will be one of the largest
of its kind in Europe.[44][45] Located in Bridgwater,
Somerset, the factory will supply Jaguar Land
Rover's future battery electric models, including
the Range Rover, Defender, Discovery and Jaguar
brands, with the potential to also supply other car
manufacturers.[35] Production at the new facility is
due to start in 2026.

10
 JOINT VENTURES

• Tata MarcopoloeditMain article: Tata Marcopolo

bus in use in Chandigarh, IndiaTata Marcopolo is a
bus-manufacturing joint venture between Tata
Motors (51%) and the Brazil-based Marcopolo S.A.
(49%). The joint venture manufactures and
assembles fully built buses and coaches targeted at
developing mass rapid transportation systems. It
uses technology and expertise in chassis and
aggregates from Tata Motors, and know-how in
processes and systems for bodybuilding and bus
body design from Marcopolo. Tata Marcopolo has
launched a low-floor city bus which is widely used
by transport corporations in many Indian cities. Its
manufacturing facility is based in Dharwad,
Karnataka State, India and Lucknow, India.Tata
Motors is expected to buy the 49% stake held by its
partner Marcopolo in the bus-making joint venture
for ₹100 crore by February 2021.
 FIAT- TATA

• FIAT-TATA-Tata is an India-based joint venture

between Tata and Stellantis' Fiat which produces
Fiat and Tata branded passenger cars, as well as
engines and transmissions. Tata Motors has gained
access to Fiat's diesel engine and transmission
technology through the joint venture.The two
companies formerly also had a distribution joint
venture through which Fiat products were sold in
India through joint Tata-Fiat dealerships. This
distribution arrangement was ended in March
2013; Fiats have since been distributed in India by
Fiat Automobiles India Limited, a wholly owned
subsidiary of Fiat and now Tata Motors.
TATA HITACHI CONSTRUCTION
MACHINERY

• Tata Hitachi Construction Machinery: Tata Hitachi

Construction Machinery is a joint venture between
Tata Motors and Hitachi which manufactures
excavators and other construction equipment.It
was previously known as Telcon Construction
Solutions.
• Set up in 1961, the oldest plant of Tata Hitachi at
Jamshedpur manufactures large class excavators.
Equipped with facilities from material preparation,
fabrication, machining, shot blasting and painting
right through to assembly. This plant houses
equipment such as robot's and CNC machines.
TATA MOTORS EUROPEAN
TECHNICAL CENTRES

• Tata Motors European Technical CentreeditThe

TATA Motors European Technical Centre is an
automotive design, engineering, and research
company.[citation needed] Company based at
WMG, University of Warwick in the United
Kingdom.[citation needed] It was established in
2005 and is wholly owned subsidiary of Tata
Motors. It was the joint developer of the World
Truck.[citation needed] In September 2013 it was
announced that a new National Automotive
Innovative Campus would be built at WMG at
Warwick's main campus at a cost of 92 million
pounds.[50] The initiative will be a partnership
between Tata Motors, the university, and Jaguar
Land Rover, with the 30 million pounds in funding
coming from Tata Motors.[51]
 HYUNDAI - TATA

• Tata Motors and Hyundai are in a joint venture to

provide the automatic transmission for Tata Harrier
model.
• Under the partnership, Tata Power will install Tata
Power EZ Charge fast chargers (DC 60 kW) at
HMIL's existing 34 EV dealer locations across 29
cities along with supply, installation, and
commissioning of home charging for HMIL's EV
customers. The association will make Tata Power
and HMIL key contributors to the expansion of
charging infrastructure. Currently, all 34 HMIL
dealer locations are equipped with AC 7.2 kW
chargers, and the company aims to expand the fast
charging infra network across its pan India
dealerships. This new partnership will be of
tremendous benefit to customers.
 PASSENGER VEHICLES

• Passenger vehicles Main article:

• Tata Motors Cars § ProductsCurrent Models
• Model Year of Introduction
• Hatchback
• Tata Tiago
• 2015Tata Altroz
• 2020SedanTata Tigor
• 2016SUV/Crossover
• Tata Punch 2021
• Tata Nexon 2017
• Tata Harrier 2018
• Tata Safari 2021
• Electric Tata Nexon EV 2020
• Tata Tigor EV 2021
• Tata Tiago EV 2022

16
 COMMERCIAL VEHICLES

• Commercial vehicles Tata Ace Tata Ace ZipTata Ace

EVTata Super AceTata IntraTata Intra V10Tata Intra
V20Tata Intra V30Tata Intra V50Tata Xenon XTTata
YodhaTata Ace MegaTata IrisTata TL/Telcoline/207
Pick-up truckTata 407 Ex and Ex2Tata 709 ExTata
807 (Steel cabin chassis, cowl chassis, medium bus
chassis, steel cabin + steel body chassis)Tata 809 Ex
and Ex2Tata 909 Ex and Ex2Tata 1210 SE and SFC
(Semi Forward)Tata 1210 LP (Long Plate)Tata 1109
(Intermediate truck/ LCV bus)Tata 1512c (Medium
bus chassis)Tata 1515c/1615 (Medium bus
chassis)Tata 1612c/1616c/1618c (Heavy bus
chassis)Tata 1618 (Semilow-floor bus chassis)Tata
1623 (Rear-engined low-floor bus chassis)Tata
1518C (Medium truck) 10 tonTata 1613/1615c
(Medium truck)Tata 1616/1618c (Heavy duty
truck)Tata 2515c/2516c/2518c (Heavy duty 10-
wheeler truck)Tata Starbus (Branded buses for city,
intercity, school bus, and standard passenger
transportation)Tata Divo (Hispano Divo)Tata
CityRide (12- to 20-seater buses for intracity
use)Tata 3015 (Heavy truck)Tata 3118 (Heavy truck)
(8×2)Tata 3516 (Heavy truck)Tata 4018 (Heavy
truck)Tata 4923 (Ultraheavy truck) (6×4)Tata
NovusTata PrimaTata SIGNA seriesTata Ultra series
(ICV Segment)Tata Winger - (Maxivan)Electric
vehicles

17
 ELECTRIC VEHICLES

• Electric vehicles Tata Motors has unveiled electric

versions of the Tata Indica passenger car powered
by TM4 electric motors and inverters,[52] as well
as the Tata Ace commercial vehicle, both of which
run on lithium batteries which launched in 2022.In
2008 Tata Motors' UK subsidiary, Tata Motors
European Technical Centre, bought a 50.3% holding
in electric vehicle technology firm Miljøbil
Grenland/Innovasjon of Norway for US$1.93
million, and planned to launch the electric Indica
hatchback in Europe the following year.[53][54][55]
In September 2010, Tata Motors presented four
CNG–Electric Hybrid low-floored Starbuses to the
Delhi Transport Corporation, to be used during the
2010 Commonwealth Games. These were the first
environmentally friendly buses to be used for
public transportation in India.

• In December 2019, Tata Motors unveiled the

Nexon EV, an SUV with a 30.2KWh lithium-ion
battery and a consistent range of 312 km on a
single charge. It is also equipped with fast charging
technology, which can charge the vehicle from 0% -
80% in 60 minutes.[56] With 525 units of Nexon EV
sold in India last month, Tata Nexon EV[57] was the
best-selling electric car in the month of April 2021
in India.

18
• Tata Passenger Electric Mobility is a subsidiary
which produces electric cars under the brand name
Tata Motors.List of Tata electric vehicles:Tata
Nexon EVTata Tigor EVTata Altroz EVTata Tiago
EVTata Ace EVElectric Vehicle ConceptseditTata
CurvvTata AvinyaTata Evision

• Discontinued ModelseditTata Telcoline (1988–

2010)Tata Sierra (1991–2003)Tata Estate (1992–
2000)Tata Sumo (1994–2019)Tata Indica (1998–
2015)Tata Spacio (2000-2011)Tata Indigo (2002–
2015)Tata Indigo Marina (2006–2009)Tata Xenon
(2007–2018)Tata Sumo Grande (2008–2016)Tata
Vista (2008–2015)Tata Nano (2008–2018)Tata
Manza (2009–2016)Tata Venture (2010–2017)Tata
Aria (2010–2017)Tata Zest (2014–2020)Tata Bolt
(2014–2019)Tata Hexa (2017–2020)

19
 TATA NANO

• Tata Nano: Tata Nano is often cited as the world's

most affordable car, nano was launched in 2009 as
a city car intended to appeal as an affordable
alternative to the section of the Indian populace
that is primarily the owner of motorcycles and has
not bought their first car. Initially priced at
₹100,000 (US$1,500), the vehicle attracted a lot of
attention for its relatively low price. However, the
Nano was very poorly rated for safety[59][60] and
in 2018, Cyrus Mistry, chairman of the Tata Group,
called the Tata Nano a failed project, with
production ending in May 2018.
 TATA ACE

• Tata Ace: Tata Ace is the, India's first indigenously

developed sub-one-ton minitruck, was launched in
May 2005. The minitruck was a huge success in
India with auto analysts claiming that Ace had
changed the dynamics of the light commercial
vehicle (LCV) market in the country by creating a
new market segment termed the small commercial
vehicle segment. Ace rapidly emerged as the first
choice for transporters and single truck owners for
city and rural transport.By October 2005, LCV sales
of Tata Motors had grown by 36.6% to 28,537 units
due to the rising demand for Ace. The Ace was
built with a load body produced by Autoline
Industries.By 2005, Autoline was producing 300
load bodies per day for Tata Motors. Ace is still a
top seller for TML with 500,000 units sold by June
2010.
 TATA PRIMA

• Tata Prima: Tata Prima in Assam, India Tata Prima

is a range of heavy trucks first introduced in 2008
as the company's 'global' truck. Tata Prima was the
winner of the 'Commercial Vehicle of the Year' at
the Apollo Commercial Vehicles Awards, 2010 and
2012.
• The Prima range of tractors and tippers are an
indispensable asset for handling larger capacities
and bringing about a revolution in the heavy trucks
segment. It was a combined effort by Tata
Motors and technology from USA, Europe,
Germany, Mexico, Japan and Korea, that led to the
creation of this award winning group
of commercial vehicles in India.
 TATA 407

• Tata 407: Tata 407 being used as water truck, the

Tata 407 is a light commercial vehicle (LCV) that
has sold over 500,000 units since its launch in
1986.[65] In India, this vehicle dominates market
share of the LCV category, accounting for close to
75% of LCV sales. The 407 model range includes
trucks, tippers, pick-ups and vehicles for agri/food
products, construction, light mining and services.
• Today, the TATA 407 GOLD is not just another
Pickup, but an emotion and an answered prayer to
Thousands of Proud Owners, seeking profitable
solutions to grow their business. Rightly named
as The Non Stop Profit Machine, this vehicle now
offers its owners the 6 six powers of profits,
performance, Driving Comfort, Convenience &
Connectivity.
 TATA HARRIER

• Tata Harrier: Tata Harrier is a 5-seater SUV that

rivals the MG Hector and Jeep Compass. This car
uses the engine from Fiat which is a 2.0 L-4
cylinder turbocharged diesel motor and
transmission from Hyundai which is a 6-speed,
available in both manual and automatic. Tata
Harrier is derived from the H5X Concept displayed
at the 2018 Auto Expo. It was launched on 23
January 2019.The car is a C-segment crossover SUV
based on the Omega Arc platform, an essentially
re-engineered version of the Jaguar Land Rover D8
platform.[68] A petrol variant of the Harrier is
confirmed to launch in 2022–23.Tata Harrier is also
available in Nepal with the name H5.
 TATA NEXON

• Tata Nexon: Tata Nexon is a subcompact crossover

SUV produced by Tata Motors since 2017. It is the
first crossover SUV from Tata Motors, and occupies
the sub-4 metre crossover SUV segment in India.
The electric version of the Nexon was revealed on
19 December 2019. The Nexon EV uses
components from Tata Motors' electric vehicle
technology brand Ziptron. The electric motor
produces 94.7 kW (127 hp; 129 PS) and 245 N⋅m
(181 lbf⋅ft) of torque and 0 - 100 under 9.9
seconds. It has a 30.2 kWh battery with an ARAI
rated range of up to 312 km. The battery can be
fully charged in under 8 hours using a
complimentary AC charger. It can also be charged
using a 15-ampere power cable that can be used at
any place with the necessary power socket.
 COMPANY PROFILE

• We are Tata Motors Group, Tata Motors Group is a

leading global automobile manufacturer. Part of
the illustrious multi-national conglomerate, the
Tata group, we offer to the world a wide and
diverse portfolio of cars, sports utility vehicles,
trucks, buses and defence vehicles.We have
operations in India, the UK, South Korea, South
Africa, China, Brazil, Austria and Slovakia through a
strong global network of subsidiaries, associate
companies and Joint Ventures (JVs), including
Jaguar Land Rover in the UK and Tata Daewoo in
South Korea.

• Tata Motors Limited (TML) is one of India’s largest

Original Equipment Manufacturers (OEMs) offering
an extensive range of integrated, smart and e-
mobility solutions.
• TML’s Commercial Vehicle (CV) offerings include
sub-1 tonne to 55-tonne Gross Vehicle Weight
(GVW) trucks and small, medium and large buses
and coaches. TML’s Passenger Vehicle (PV)
offerings include the NEW FOREVER range that
exemplifies the IMPACT 2.0 design language across
cars and utility vehicles and is developed using
pioneering technologies that are sustainable.

26
 DESTINATON ZERO

𝘿𝙀𝙎𝙏𝙄𝙉𝘼𝙏𝙄𝙊𝙉 𝙕𝙀𝙍𝙊 JLR's vision is a world of

sustainable, smart mobility – Destination Zero –
enhancing the quality of everyone’s life with zero
emissions, zero accidents and zero congestion
through relentless innovation. Our ambition is to
make our societies safer and healthier, and our
environments cleaner through relentless innovation.
Adapting our products and services to the rapidly-
changing world around us.

𝙊𝙩𝙝𝙚𝙧 𝙨𝙪𝙗𝙨𝙞𝙙𝙞𝙖𝙧𝙞𝙚𝙨𝙏𝘼𝙏𝘼 𝙈𝙊𝙏𝙊𝙍𝙎

𝙁𝙄𝙉𝘼𝙉𝘾𝙀Tata Motors Finance Limited (TMFL) and
Tata Motors Finance Solutions Limited (TMFSL) are
Non-Banking Financial Companies (NBFCs). They are
the subsidiaries of TMF Holdings Limited
(TMFHL).TMFHL is a 100% subsidiary of TML and a
Core Investment Company (CIC). TMFL facilitates
new vehicle financing. TMFSL undertakes the
dealer/vendor financing business and the used
vehicle refinance/ repurchase business.

27
 TATA DAEWOO & TATA
TECHNOLOGIES LIMITED

• Tata Motors Group also holds key subsidiaries,

such as Tata Daewoo Commercial Vehicles and Tata
Technologies Limited.In 2004, the Tata Motors
Group acquired Korea’s second largest truck maker
Daewoo Commercial Vehicles. Today, it exports its
vehicles to 60+ countries.Tata Technologies Limited
is a leading company in engineering services
outsourcing and product development IT services,
providing a competitive edge to global
manufacturers.

• 𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨 𝙈𝙖𝙧𝙠𝙚𝙩𝙞𝙣𝙜 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙮 &

𝙈𝙖𝙧𝙠𝙚𝙩𝙞𝙣𝙜 𝙈𝙞𝙭 (4𝙋𝙨)Marketing Strategy of Tata
Motors analyzes the brand with the marketing mix
framework which covers the 4Ps (Product, Price,
Place, Promotion). These business strategies,
based on Tata Motors marketing mix, help the
brand succeed in the market. Let us start the Tata
Motors Marketing Strategy & Mix to understand its
product, pricing, advertising & distribution
strategies:

28
 TATA MOTORS
PRODUCT STRATEGY

• 𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨 𝙋𝙧𝙤𝙙𝙪𝙘𝙩 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙮:The product

strategy and mix in Tata Motors marketing strategy
can be explained as follows: Tata Motors is
involved in manufacturing of vehicles in categories
that include cars Hatchback, Sedan and utility
vehicles, Trucks, Buses, Municipal Solutions, and
defence and homeland security. The product
portfolio in the marketing mix of Tata Motors also
covers brands like Jaguar and Land Rover. The
consumers perceive the Tata Motors brand that
produces vehicles that provides reliability, high
quality, and efficiency. Tata Motors ranks in top
four passenger vehicle brands in India.

• In addition, Tata Motors follow stringent Quality

norms and abides by the rules laid down by the
regulatory agencies. In its focused developed on
innovation, Tata Motors had unveiled electric
versions of Tata Indica car and Tata Ace commercial
vehicle that runs on lithium batteries. During
Commonwealth games, Tata Motors presented
CNG – electric hybrid buses to Delhi Transport
Corporation that were part of environment friendly
buses. The Tata 407, of the Light commercial
vehicle category has sold over 5,00,000 units since
its initial launch.

29
 TATA MOTORS PRICE &
PRICING STRATEGY

• 𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨 𝙋𝙧𝙞𝙘𝙚/𝙋𝙧𝙞𝙘𝙞𝙣𝙜 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙮:Below is

the pricing strategy in Tata Motors marketing
strategy:Tata Motors has a diverse portfolio, which
means a diverse pricing strategy. In 2008, Tata
Motors launched Tata Nano the cheapest
passenger car in the world.It followed penetration-
pricing strategy and vehicles manufactured by Tata
Motors are comparatively cheaper than its
competitors are. Due to its low price, it attracted
media attention and the vehicle reported an
increase in sales figure within short time during
the initial days of the launch. The lower pricing of
Tata Nano also resulted in consumers perceiving it
as a cheap product. The penetration pricing
strategy can act as entry barrier for new players in
the segment targeting lower income group. The
pricing strategy in the marketing mix of Tata
Motors caters to the lower class as well as the
affluent upper class. Tata Motors’ international
acquisition Jaguar Land Rover targets niche
customers providing high quality features.

30
 TATA MOTORS PLACE &
DISTRIBUTION STRATEGY

• 𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨 𝙋𝙡𝙖𝙘𝙚 & 𝘿𝙞𝙨𝙩𝙧𝙞𝙗𝙪𝙩𝙞𝙤𝙣

𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙮:Following is the distribution strategy in
the Tata Motors marketing mix:Tata Motors has the
third largest service and sales network in India. To
distribute its vehicles, it has partnered with various
distributors across India and the service centres
are well equipped with the spare parts and
accessories. Tata Motors has extensive distribution
network set up across India, also major launches
are displayed in showrooms to experience the
product. To purchase defence vehicles, Tata Motors
has set up regional offices in the states of West
Bengal, Maharashtra, Delhi and Karnataka. It is also
involved in the sales of Pre – Owned Cars and
provides features such as extended warranty.

31
 TATA MOTORS
PROMOTION &
ADVERTISING STRATEGY

𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨 𝙋𝙧𝙤𝙢𝙤𝙩𝙞𝙤𝙣 & 𝘼𝙙𝙫𝙚𝙧𝙩𝙞𝙨𝙞𝙣𝙜

𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙮:The promotional and advertising strategy
in the Tata Motors marketing strategy is as follows:
Tata Motors has been known to having an aggressive
marketing strategy. To endorse its passenger vehicles
globally, Tata Motors declared Lionel Messi as their
brand Ambassador. It also signed film celebrities as
brand ambassador for its commercial vehicle
business. Tata Motors is the prime sponsor of many
events and it helped in creating awareness about its
new product Tata Tiago in the minds of the
consumers. The company offers discount to its
customers as part of festival offers in India hence
developing interest among consumers. The
promotional strategy in the marketing mix of Tata
Motors is carried out in the form of TV, Newspapers,
and electronic media. Tata Motors leverages upon
Social media marketing to target customers based
on the search results. The Tata brand is considered a
trusted brand hence it uses the same to tap on the
customers.

32
 ABOUT TATA MOTORS

• Tata Motors is headquartered in Mumbai, India

and is an Indian automotive manufacturing
company. Its products ranges from trucks, cars,
passenger vans, buses military vehicles and
construction equipment. Tata Motors was founded
in the year 1945 as locomotive manufacturer and
in collaboration with Daimler-Benz AG it’s
manufactured its first commercial vehicle in 1954.
In 2008, Tata Motors was in news for the worlds
cheapest car “Tata Nano”. As per its merger and
acquisition strategy, it acquired Jaguar Land Rover
from Ford and Daewoo Commercial Vehicles
Company, which is a South Korean Truck
manufacturer. In 2016, the company is ranked
226th on Fortune Global 500 list of world’s biggest
corporations. Tata Motors has its vehicle assembly
plants in India, Thailand, South Africa, Great
Britain, South Korea, and Spain.

33
 RESEARCH AND
METHODOLOGY

• 𝙍𝙚𝙨𝙚𝙖𝙧𝙘𝙝 𝙈𝙚𝙩𝙝𝙤𝙙𝙤𝙡𝙤𝙜𝙮𝙏𝙤 𝙙𝙚𝙫𝙚𝙡𝙤𝙥 𝙩𝙝𝙞𝙨

𝙧𝙚𝙥𝙤𝙧𝙩, 𝙄 𝙖𝙙𝙤𝙥𝙩𝙚𝙙 𝙨𝙪𝙧𝙫𝙚𝙮𝙨 𝙖𝙨 𝙩𝙝𝙚 𝙢𝙤𝙨𝙩
𝙖𝙥𝙥𝙧𝙤𝙥𝙧𝙞𝙖𝙩𝙚 𝙩𝙚𝙘𝙝𝙣𝙞𝙦𝙪𝙚 𝙩𝙤 𝙘𝙤𝙡𝙡𝙚𝙘𝙩 𝙩𝙝𝙚
𝙧𝙚𝙦𝙪𝙞𝙨𝙞𝙩𝙚 𝙞𝙣𝙛𝙤𝙧𝙢𝙖𝙩𝙞𝙤𝙣. 𝙏𝙝𝙚 𝙨𝙪𝙧𝙫𝙚𝙮
𝙘𝙡𝙖𝙨𝙨𝙞𝙛𝙞𝙚𝙙 𝙩𝙝𝙚 𝙙𝙚𝙢𝙤𝙜𝙧𝙖𝙥𝙝𝙞𝙘𝙨 𝙤𝙛 𝙩𝙝𝙚 𝙩𝙖𝙧𝙜𝙚𝙩
𝙢𝙖𝙧𝙠𝙚𝙩 𝙛𝙤𝙧 𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨 𝙖𝙣𝙙 𝙨𝙚𝙜𝙢𝙚𝙣𝙩𝙚𝙙 𝙩𝙝𝙚
𝙩𝙖𝙧𝙜𝙚𝙩 𝙢𝙖𝙧𝙠𝙚𝙩 𝙞𝙣 𝙩𝙚𝙧𝙢𝙨 𝙤𝙛 𝙖𝙜𝙚. 𝘼𝙘𝙘𝙤𝙧𝙙𝙞𝙣𝙜
𝙩𝙤 𝙂𝙪𝙢𝙢𝙚𝙨𝙨𝙤𝙣 (2000), 𝙢𝙖𝙧𝙠𝙚𝙩𝙞𝙣𝙜
𝙨𝙚𝙜𝙢𝙚𝙣𝙩𝙖𝙩𝙞𝙤𝙣 𝙞𝙨 𝙩𝙝𝙚 𝙥𝙧𝙤𝙘𝙚𝙨𝙨 𝙤𝙛 𝙞𝙙𝙚𝙣𝙩𝙞𝙛𝙮𝙞𝙣𝙜
𝙖 𝙥𝙤𝙩𝙚𝙣𝙩𝙞𝙖𝙡 𝙢𝙖𝙧𝙠𝙚𝙩, 𝙨𝙪𝙗𝙙𝙞𝙫𝙞𝙙𝙞𝙣𝙜 𝙞𝙩 𝙞𝙣𝙩𝙤
𝙝𝙤𝙢𝙤𝙜𝙚𝙣𝙚𝙤𝙪𝙨 𝙨𝙚𝙜𝙢𝙚𝙣𝙩𝙨 𝙬𝙝𝙞𝙡𝙚 𝙧𝙚𝙛𝙚𝙧𝙧𝙞𝙣𝙜 𝙩𝙤
𝙩𝙝𝙚 𝙘𝙝𝙖𝙧𝙖𝙘𝙩𝙚𝙧𝙞𝙨𝙩𝙞𝙘𝙨 𝙤𝙛 𝙩𝙝𝙚 𝙢𝙖𝙧𝙠𝙚𝙩. 𝙏𝙝𝙚𝙨𝙚
𝙘𝙝𝙖𝙧𝙖𝙘𝙩𝙚𝙧𝙞𝙨𝙩𝙞𝙘𝙨 𝙘𝙖𝙣 𝙗𝙚 𝙞𝙣 𝙩𝙝𝙚 𝙛𝙤𝙧𝙢 𝙤𝙛 𝙬𝙖𝙣𝙩𝙨,
𝙣𝙚𝙚𝙙𝙨, 𝙤𝙧 𝙙𝙚𝙢𝙤𝙜𝙧𝙖𝙥𝙝𝙞𝙘𝙨 𝙤𝙛 𝙩𝙝𝙚
𝙥𝙤𝙥𝙪𝙡𝙖𝙩𝙞𝙤𝙣.𝙏𝙝𝙚 𝙙𝙖𝙩𝙖 𝙤𝙗𝙩𝙖𝙞𝙣𝙚𝙙 𝙬𝙖𝙨 𝙩𝙝𝙧𝙤𝙪𝙜𝙝
𝙩𝙝𝙚 𝙨𝙪𝙧𝙫𝙚𝙮 𝙩𝙝𝙖𝙩 𝙬𝙖𝙨 𝙨𝙚𝙣𝙩 𝙤𝙪𝙩 𝙩𝙤 𝙩𝙝𝙚
𝙧𝙚𝙨𝙥𝙤𝙣𝙙𝙚𝙣𝙩𝙨. 𝘼𝙘𝙘𝙤𝙧𝙙𝙞𝙣𝙜 𝙩𝙤 𝙈𝙮𝙚𝙧𝙨 (2013), 𝙖
𝙨𝙪𝙧𝙫𝙚𝙮 𝙞𝙨 𝙩𝙝𝙚 𝙖𝙙𝙢𝙞𝙣𝙞𝙨𝙩𝙧𝙖𝙩𝙞𝙤𝙣 𝙤𝙛
𝙦𝙪𝙚𝙨𝙩𝙞𝙤𝙣𝙣𝙖𝙞𝙧𝙚𝙨 𝙩𝙤 𝙖 𝙨𝙖𝙢𝙥𝙡𝙚, 𝙖𝙣𝙙 𝙩𝙝𝙚 𝙧𝙚𝙨𝙪𝙡𝙩𝙨
𝙛𝙧𝙤𝙢 𝙩𝙝𝙚 𝙨𝙪𝙧𝙫𝙚𝙮 𝙖𝙧𝙚 𝙪𝙨𝙚𝙙 𝙩𝙤 𝙜𝙚𝙣𝙚𝙧𝙖𝙡𝙞𝙯𝙚 𝙩𝙝𝙚
𝙩𝙧𝙚𝙣𝙙𝙨 𝙞𝙣 𝙩𝙝𝙚 𝙥𝙤𝙥𝙪𝙡𝙖𝙩𝙞𝙤𝙣. 𝙁𝙤𝙧 𝙤𝙪𝙧 𝙘𝙖𝙨𝙚, 𝙞𝙩
𝙬𝙖𝙨 𝙩𝙝𝙚 𝙥𝙧𝙚𝙛𝙚𝙧𝙚𝙣𝙘𝙚 𝙛𝙤𝙧 𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨
𝙚𝙘𝙤𝙣𝙤𝙢𝙮 𝙘𝙖𝙧, 𝙏𝙖𝙩𝙖 𝙉𝙖𝙣𝙤, 𝙖𝙢𝙤𝙣𝙜 𝙩𝙝𝙚
𝘾𝙖𝙣𝙖𝙙𝙞𝙖𝙣𝙨 (𝙇𝙚𝙬𝙞𝙣, 2008).

34
• The survey aimed at establishing the preferences
for Tata Nano economy motor car, among different
age groups. Tata Nano has been described as the
world’s most economical car due to its
affordability. Information collected from the survey
will be used to indicate the entry behavior of Tata
Nano in the Canadian market, the potential
problems it will face, and the appeal it will make to
Canadian buyers. The following was the target
population for the survey, after segmenting the
target market with respect to age. Therefore, the
sample instrument for the survey was
administered to the following respondents. The
questionnaire had close-ended questions that
required the respondents to tick what they felt was
most appropriate.

• Throughout the survey, a myriad of challenges was

encountered. One of the biggest challenges was
the lack of cooperation from part of the targeted
population. Another greatest challenge was
determining how to segment the target market. I
was able to select age as the basis for segmenting
the market by using the affordability for the Tata
Nano motor car. I believed economic status and
income levels differ in age groups (Patra, 2010).

35
 PREFERENCE FOR
TATA NANO

• 𝙋𝙧𝙚𝙛𝙚𝙧𝙚𝙣𝙘𝙚 𝙛𝙤𝙧 𝙏𝙖𝙩𝙖 𝙉𝙖𝙣𝙤The survey carried

out revealed the information presented in the pie-
chart below (See table 3.1 in the
appendices).Preference for Tata NanoThe pie-chart
above indicates the preference for the Tata Nano.
It was based on the age of the target population
since age was the adopted demographic for this
survey. From the data analysis, it is evident that 50
percent of the target population comprising the
younger generation preferred the Tata Nano motor
car than any other age bracket within the target
population.

• 𝙋𝙧𝙤𝙗𝙡𝙚𝙢𝙨 𝙩𝙤 𝙁𝙖𝙘𝙚𝙏𝙖𝙩𝙖 𝙉𝙖𝙣𝙤The severity of

anticipated problems are presented in the pie-
chart below. As such, the car is likely to face tough
competition (55%) from its substitutes. Other
problems e.g., brand recognition, are insignificant.

36
𝘼𝙥𝙥𝙚𝙖𝙡 𝙩𝙝𝙖𝙩 𝙏𝙖𝙩𝙤 𝙉𝙖𝙣𝙤 𝙬𝙞𝙡𝙡 𝙝𝙖𝙫𝙚 𝙩𝙤 𝘾𝙖𝙣𝙖𝙙𝙞𝙖𝙣
𝙗𝙪𝙮𝙚𝙧𝙨With regards to appeal, results reveal that
Canadians will likely purchase the car (50% of the
correspondent). This is presented in the bar graph
below (data on appendix 3).

𝘿𝙞𝙨𝙘𝙪𝙨𝙨𝙞𝙤𝙣𝙄𝙣𝙩𝙚𝙧𝙥𝙧𝙚𝙩𝙖𝙩𝙞𝙤𝙣 𝙤𝙛 𝙩𝙝𝙚 𝙁𝙞𝙣𝙙𝙞𝙣𝙜𝙨 The

study conducted had the aim of establishing three
key components regarding the attempt to introduce
the Tata Nano economy Motor Car in the Canadian
market. The first key component of this was the
preference for the Tata Nano economy motor car.
From the results obtained from the survey, it is quite
clear that from the targeted population, the youth
had a high preference for this economy motor car if
it was to be introduced in the Canadian market.The
preference for the Tata Nano motor car within the
middle-aged group closely followed that of the
youth. Their preference was at 30% for the Tata
Nano economy motor car. The preference for the
Tata Nano motor car was lowest within the old-aged
group that was over 60 years. They exhibited a
preference of 20% for the Tata Nano motor cars.
These results can be attributed to factors such as
income and economic level of the targeted
population, and fashion as well.

37
• The second key component that triggered the
survey was the eagerness to know the different
problems that would face an attempt to bring the
Tata Nano motor car in the Canadian Market. The
results of the survey indicated that the major
problem that Tata Nano would face in the Canadian
market was competition (55%), probably coming
from Canadian brands such as Bombardier and the
New Flyer.The next major problem that would face
the Tata Nano motor car in the Canadian market
was the low market share (33%). Low market share
would inhibit the growth of the market for the Tata
Nano motor cars, consequently prompting the
need for advertising in order to gain the requisite
market share. This comes at an extra cost. The last
problem that was identified was brand recognition
(12%).The last component that triggered this
survey was the willingness to know any potential
appeals that the Tata Nano motor car would have
to the Canadian buyers. Data were collected with
the aim of finding this. From the results obtained,
50% of the respondents indicated that the appeal
would be high, while 30% of the respondents
indicated that the appeal would be moderate, and
10% of the respondents indicated that the appeal
would be low.

38
 THE EXPLANATION FOR
THE FINDINGS

• From the data interpreted above, it is evident that

the Tata Nano would have a high preference for the
youths than any other age group. This means if the
product was to be introduced in the market. Youths
should be the focus group since they would prefer
the purchase of the Tata Nano cars more than any
other group. This is dependent on many factors,
such as income level, economic status, and
fashion.Another important finding was that among
the problems that the Tato Nano would face in the
Canadian market, competition would be the major
problem.

• This has serious implications for the marketing

department of the Tata Motor Company. It means
that a marketing strategy that will help outdo the
competition and at the same time, assist in market
penetration needs to be formulated. An example of
such a marketing strategy would be an aggressive
advertisement for the economy car. This again has
an implication in that the Company needs to invest
heavily in advertisements. The last and the most
important finding is the appeal that the Tata Nano
might have to the Canadian buyers if it was to be
introduced in the market.

39
 CONCLUSIONS

• To conclude this report, I have summed up the

major findings. The report was aimed at finding out
if Tata Nano, an economy motor car manufactured
by the Tata Motor Company, which is an Indian-
based company, will have a market if it was to be
introduced in Canada. Literature was reviewed
with the aim of establishing a theoretical
background for this report. The literature reviewed
included scholarly sources and print sources. The
research methodology adopted, in this case, which
was the survey approach, yielded results that
satisfied the prerequisites for this report. A survey
basically targets a sample of the population from
where generalizations are made. These surveys
were administered to the target population (112
people), which had been segmented in terms of
age, which was found to be the most appropriate
demographic for this kind of study. The results
collected from the research instrument indicated
that the Tata Nano cars would appeal to the young
generation below 30 years. Therefore, marketing
strategies ought to target this group. Moreover,
with a 50% appeal from the Canadian market,
there is a potential for business in the region.
However, to increase its market share and outdo
the competition, Tata Nano has to invest heavily in
the advertisement.

51
 RECOMMENDATIONS

• My recommendations to the Tata Motor Company

regarding their Tata Nano economy motor car and
other aspects are as follows. First, Tata Motor
Company should introduce the Tata Nano in the
Canadian market since there is a market for the
economy car. Second, there is a need to invest
heavily in the advertisement to outdo completion.
Three, the advertisement should be inclined
towards the youth. Finally, risk assessment is the
key to the success of any venture; therefore, Tata
Motors should be conducting it periodically.

40
 REFERENCES

• Bhaktavatsala, P. (2008). “Tata Motors enters into

Definitive Agreement with Ford for purchase of
Jaguar Land Rover.” Motor Industries, 26 (14), 45-
60.Gummesson, E (2000). Qualitative Methods in
Management Research. 2nd edition, Sage,
Thousand Oaks, CA.Lewin, T. (2008). “Classic
names are part of Tata deal.” Crain
Communications, 34 (3), 45-46.Myers, M. D (2013).
Qualitative Research in Business & Management.
London: Sage Publications.Patra, C. (2010).
“Structural Configurations and Strategic
Investments: Indian Automobile Industry.”
Economic and Political Journal 28 (9), 29-
30.Singhra, V. (2012). “Tatas readying new line of
CVs to take on competition.” Business Journal, 14
(34), 2-3.Trauth, E. M. (2001). Qualitative Research
in IS: Issues and Trends. London.

41
 APPENDICES

• Appendix 1: Table 3.1. Showing the preference age

group for Tato NanoAge Frequency
Percentage15-35 56 5035-60 34
30Over 60 10 20Total 112
100Source Data (2015)Appendix 2: Table 3.2
showing the severity of problems anticipated by
Tata NanoProblem Frequency
PercentageLow market share 37
33Competition 62 55Brand recognition
13 12Total 112 100Source Data
(2015)Appendix 3: Table 3.3 showing how Tata
Nano wil appeal to Canadian buyersAppeal
Frequency PercentageHigh 56
50Moderate 34 30Low 10 20Total
112 100Source Data (2015)Appendix 4:

• Sample QuestionnaireThe following sample

instrument was designed with an aim of
investigating how different age groups prefer, Tata
Nano economy car in Canada.The responses were
treated with anonymity.1) Please tick your age.15-
3535-60Over 602) How do you prefer Tata Nano
economy car?HighModerateLow3) What would
you say is the biggest problem to face Tata Nano in
Canadian market?CompetitionBrand

42
• 𝙏𝘼𝙏𝘼 𝙈𝙊𝙏𝙊𝙍𝙎 𝙄𝙣𝙘𝙤𝙢𝙚 𝙎𝙩𝙖𝙩𝙚𝙢𝙚𝙣𝙩 𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨
Operating income during the year rose 24.2% on a
year-on-year (YoY) basis.The company's operating
profit increased by 47.0% YoY during the fiscal.
Operating profit margins witnessed a fall and down
at 9.7% in FY23 as against 8.2% in
FY22.Depreciation charges increased by 0.1% and
finance costs increased by 9.8% YoY,
respectively.Other income grew by 7.1% YoY.Net
profit for the year declined by NA YoY.Net profit
margins during the year grew from 4.0% in FY22 to
0.7% in FY23.

• 𝙏𝘼𝙏𝘼 𝙈𝙊𝙏𝙊𝙍𝙎 𝘾𝙖𝙨𝙝 𝙁𝙡𝙤𝙬 𝙎𝙩𝙖𝙩𝙚𝙢𝙚𝙣𝙩

𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨TATA MOTORS's cash flow from operating
activities (CFO) during FY23 stood at Rs 354 billion,
an improvement of 147.8% on a YoY basis.Cash
flow from investing activities (CFI) during FY23
stood at Rs -168 billion, an improvement of 251.9%
on a YoY basis.Cash flow from financial activities
(CFF) during FY23 stood at Rs -262 billion on a YoY
basis.Overall, net cash flows for the company
during FY23 stood at Rs -63 billion from the Rs 65
billion net cash flows seen during FY22.

43
CURRENT VALUATION OF
TATA MOTORS

• The trailing twelve-month earnings per share (EPS)

of the company stands at Rs 6.1, an improvement
from the EPS of Rs -29.3 recorded last year. The
price to earnings (P/E) ratio, at the current price of
Rs 567.1, stands at 80.0 times its trailing twelve
months earnings. The price to book value (P/BV)
ratio at current price levels stands at 4.2 times,
while the price to sales ratio stands at 0.6 times.
The company's price to cash flow (P/CF) ratio stood
at 6.1 times its end-of-year operating cash flow
earnings.

• 𝙍𝙖𝙩𝙞𝙤 𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨 𝙛𝙤𝙧 𝙏𝘼𝙏𝘼 𝙈𝙊𝙏𝙊𝙍𝙎𝙎𝙤𝙡𝙫𝙚𝙣𝙘𝙮

𝙍𝙖𝙩𝙞𝙤𝙨𝘾𝙪𝙧𝙧𝙚𝙣𝙩 𝙍𝙖𝙩𝙞𝙤: The company's current
ratio improved and stood at 1.0x during FY23, from
1.0x during FY22. The current ratio measures the
company's ability to pay short-term and long-term
obligations. 𝙄𝙣𝙩𝙚𝙧𝙚𝙨𝙩 𝘾𝙤𝙫𝙚𝙧𝙖𝙜𝙚 𝙍𝙖𝙩𝙞𝙤: The
company's interest coverage ratio improved and
stood at 1.3x during FY23, from 0.2x during FY22.
The interest coverage ratio of a company states
how easily a company can pay its interest expense
on outstanding debt. A higher ratio is preferable.

44
• 𝙋𝙧𝙤𝙛𝙞𝙩𝙖𝙗𝙞𝙡𝙞𝙩𝙮 𝙍𝙖𝙩𝙞𝙤𝙨𝙍𝙚𝙩𝙪𝙧𝙣 𝙤𝙣 𝙀𝙦𝙪𝙞𝙩𝙮 (𝙍𝙊𝙀):
The ROE for the company improved and stood at
5.2% during FY23, from -25.2% during FY23. The
ROE measures the ability of a firm to generate
profits from its shareholders capital in the
company.
• 𝙍𝙚𝙩𝙪𝙧𝙣 𝙤𝙣 𝘾𝙖𝙥𝙞𝙩𝙖𝙡 𝙀𝙢𝙥𝙡𝙤𝙮𝙚𝙙 (𝙍𝙊𝘾𝙀): The
ROCE for the company improved and stood at 9.9%
during FY23, from 1.6% during FY22. The ROCE
measures the ability of a firm to generate profits
from its total capital (shareholder capital plus debt
capital) employed in the company.
• 𝙍𝙚𝙩𝙪𝙧𝙣 𝙤𝙣 𝘼𝙨𝙨𝙚𝙩𝙨 (𝙍𝙊𝘼): The ROA of the
company improved and stood at 3.8% during FY23,
from -0.6% during FY22. The ROA measures how
efficiently the company uses its assets to generate
earnings.

• 𝙏𝘼𝙏𝘼 𝙈𝙊𝙏𝙊𝙍𝙎 𝙎𝙝𝙖𝙧𝙚 𝙋𝙧𝙞𝙘𝙚 𝙋𝙚𝙧𝙛𝙤𝙧𝙢𝙖𝙣𝙘𝙚

Over the last one year, TATA MOTORS share price
has moved up from Rs 405.1 to Rs 567.1,
registering a gain of Rs 162.0 or around
40.0%.Meanwhile, the S&P BSE AUTO Index is
trading at Rs 33,830.6 (up 0.0%). Over the last one
year it has moved up from 25,298.0 to 33,830.6, a
gain of 8,533 points (up 33.7%).Overall, the S&P
BSE SENSEX is up 19.3% over the year.

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• 𝙁𝙪𝙣𝙙𝙖𝙢𝙚𝙣𝙩𝙖𝙡 𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨 𝙤𝙛 𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨We’ll
start off our study of the carmaker by getting
ourselves acquainted with the business and the
scale of its operations. Next, we’ll look in-depth at
its various business segments. After that, we’ll
equip ourselves with auto industry insights.The
sections later will race us through the financials of
this auto stock. A highlight of the future plans and
a summary conclude the article at the end.

• 𝘾𝙤𝙢𝙥𝙖𝙣𝙮 𝙊𝙫𝙚𝙧𝙫𝙞𝙚𝙬 Founded close to 8 decades

ago in 1945, Tata Motors Ltd. is the largest
commercial vehicle manufacturer and one of the
top three passenger vehicle manufacturers in India.
It is part of the salt-to-software conglomerate the
Tata Group which holds a 46.4% promoter stake in
the company. Tata Motors is also referred to as the
Tata Motors Group because of its large scale of
operations. It has operations spread across India,
the UK, South Korea and South Africa through its
86 subsidiaries, 10 associate companies, 4 JVs and
2 joint operations. As of the writing of this article,
its market cap stood at Rs 1,88,500 crore.

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TATA MOTORS PROBLEMS

• 𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨 𝙋𝙧𝙤𝙗𝙡𝙚𝙢𝙨 However, the carmaker

ran into serious financial troubles in the last few
years because of its overpriced acquisitions and
dampened sales. It posted huge losses wiping out
its equity base and pushing the company to the
brink of bankruptcy. However, it has made a strong
comeback with cost controlling and back-to-back
hit launches across various segments. As a feather
in its cap, the company controls a whopping 81.4%
of the fast-growing PV EV market in India with its
top-selling models such as Nexon EV and Tiago
EV.We got a good understanding of the company.
Let us learn about its various business segments
for our fundamental analysis of Tata Motors.

• 𝙎𝙚𝙜𝙢𝙚𝙣𝙩 𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨Broadly, TaMo organises its

business into four segments for reporting
purposes:The 𝙘𝙤𝙢𝙢𝙚𝙧𝙘𝙞𝙖𝙡 𝙫𝙚𝙝𝙞𝙘𝙡𝙚 is the
second largest sub-segment for the automaker
under which it sells buses, trucks and other such
commercial vehicles of different sizes.

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 INDUSTRY OVERVIEW

• The global automobile industry registered negative

growth in the last few fiscals because of a variety
of factors including general economic slowdown,
Covid-19 led pandemic, supply chain disruptions,
and shortage of key components. The production
of light vehicles (LV) fell to 76 million (Mn) units in
FY22 from 92 million units in FY19 to 76 Mn units
in FY22. During the same period, the production of
medium and heavy-duty (M&HD) trucks also
registered a marginal decline to 2.2 Mn in FY22
from 2.5 Mn in FY19. Various industry research
groups project a gradual increase in production for
LV and M&HD to reach 94 Mn units and 2.6 Mn
respectively. Talking about the domestic
automotive landscape, the sector has been
struggling long before the pandemic struck. The
production figures from the Society of Indian
Automobile Manufacturers (SIAM) for various sub-
segments throw light on India’s automotive
industry.

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• 𝙍𝙚𝙫𝙚𝙣𝙪𝙚 & 𝙉𝙚𝙩 𝙋𝙧𝙤𝙛𝙞𝙩 𝙂𝙧𝙤𝙬𝙩𝙝 The sales of
TaMo have remained volatile in the last five fiscals.
It is only in the recent two fiscals that the company
has been able to increase its top line. During the
same period, it reported heavy losses on account
of impairment in the Jaguar Land Rover &
passenger vehicle business and high-interest costs.
The automaker turned profitable in the recent
fiscal with a profit after tax of Rs 2,960 crore. The
table below presents the operating revenue and
net profit/loss of Tata Motors over the last few
financial years.

• 𝙋𝙧𝙤𝙛𝙞𝙩 𝙈𝙖𝙧𝙜𝙞𝙣𝙨 The automaker was able to post

positive EBITDA margins in past but reported
negative net profit margins. Thus, we can say that
TaMo’s problems were not regular in nature. Even
though the sales were declining, the company was
able to produce cars and deliver them to its
customers. In addition to interest costs, its
problems arose from the exceptional item of
goodwill impairment for its overpriced acquisition
of JLR and struggling passenger vehicle division.
The table below presents the EBITDA margin and
net profit margin of Tata Motors.

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• 𝙍𝙚𝙩𝙪𝙧𝙣 𝙍𝙖𝙩𝙞𝙤𝙨The impact of losses of Tata
Motors was huge on the shareholders’ equity
wiping out the reserves of the company. Its return
on equity (RoE) stood close to or more than 20%
from FY19 to FY22. It is only in the recent fiscal the
automaker delivered a positive return on equity of
5.6%.The table below presents the return on
capital employed (RoCE) and return on equity (RoE)
over the last five fiscals. The positive RoCE with
negative RoE tells us about the unusually high-
interest costs of the company.

• 𝘿𝙚𝙗𝙩 𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨As it suffered losses, the company

borrowed more to fund its operations while its
equity base kept depleting. Thus, in the previous
fiscals, TaMo had very low-interest coverage and a
high debt-to-equity ratio. In FY19, promoter Tata
Sons made a capital infusion of Rs 6,500 crore to
support the company financially. The situation
marginally improved in the recent fiscal when it
reported profits and paid back some debt. The
interest coverage ratio of debt to equity ratio of
Tata Motors stood at 1.13 times and 2.96 in
FY23.The table below showcases the low-interest
coverage ratio and high debt/equity ratio of Tata
Motors for the last five financial years.

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 FUTURE PLANS OF TATA
MOTORS

• 𝙁𝙪𝙩𝙪𝙧𝙚 𝙋𝙡𝙖𝙣𝙨 𝙊𝙛 𝙏𝙖𝙩𝙖 𝙈𝙤𝙩𝙤𝙧𝙨 So far we looked

at the previous fiscals data for our fundamental
analysis of Tata Motors. This section lets us
understand what lies ahead for the company and
its investors. The management has earmarked a
large investment of €15 billion for the next five
years to accelerate electrification in Jaguar Land
Rover. The average revenue per unit of JLR has
increased over the last five fiscals signalling a
higher realisation in the coming quarters for the
company.The management is targeting a free cash
flow of more than €2 billion in the near future and
a reduction in debt to less than €2 billion by
FY24.As for its PV and CV business, TaMo is
focused on scaling up the EV volumes and
increasing market share in international markets.
The company has plans to make the recently
acquired plant of Ford in Sanad operational in 12-
18 months to increase its production capacity.

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