Established in 1945, Tata Motors is India’s largest automobile company, with revenues of Rs 24,000 crore (USD 5.5 billion) in 2005-06. Ravi Kant, managing director, Tata Motors. Mr. Ratan N. Tata, Chairman of Tata Motors .The company began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. Tata Motors is India’s largest automobile company, with revenues of US$ 4.7 billion in 2004 05. With over 3 million Tata vehicles plying in India, it is the leader by far in commercial vehicles and the second largest in passenger cars. It is also the world’s fifth largest medium and heavy truck manufacturer and the second largest medium and heavy bus manufacturer. Tata cars, buses and trucks are already being marketed in several countries in Europe, Africa, the Middle East, South Asia, and South East Asia and in Australia. The company acquired the Daewoo Commercial Vehicles Company, Korea’s second largest truck maker, in 2004. In 2005, it acquired a 21% stake in Hispano Carrocera, the reputed Spanish bus and coach manufacturer.
Areas of business
Tata Motors’ product range covers passenger cars, multi-utility vehicles as well as light, medium and heavy commercial vehicles for goods and passenger transport. Seven out of 10 medium and heavy commercial vehicles in India bear the trusted Tata mark. The company developed India’s first indigenously developed light commercial vehicle, India’s first sports utility vehicle and, in 1998, the Tata Indica — India’s first indigenously manufactured passenger car. Within two years of launch, Tata Indica became India’s largest selling car in its segment.
Commercial vehicle business unit
The company has over 130 models of light, medium and heavy commercial vehicles ranging from two tonnes to forty tonnes, buses ranging from 12-seaters to 60-seaters, tippers, special purpose vehicles, off-road vehicles and defence vehicles.
Passenger car business unit
The company’s passenger car range comprises the compact car Indica, the midsize Indigo and Indigo Marina in both petrol and diesel versions. The Tata Sumo, the Tata Safari and its variants are the company’s multi-utility vehicle offerings.
In addition to the growth opportunities in the domestic market, the company is pursuing growth through acquisitions. In 2004, it acquired the Daewoo Commercial Vehicle Company, Korea’s second-largest truck maker, now named Tata Daewoo Commercial Vehicles Company. In 2005, Tata Motors acquired a 21-per cent stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well.
Research and development
Tata Motors invests approximately up to 2 per cent of its annual turnover on research and development, with an emphasis on new product / aggregates development and technology upgradation. Its Engineering Research Centre in Pune employs over 1,400 scientists and engineers and has India’s only certified crash-test facility and hemi-anechoic chamber for testing of noise and vibration.
The company also draws on the resources of leading international design and styling houses like the Institute of Development in Automotive Engineering, SPA, Italy, and Stile Bertoni, Italy. The company has also been implementing several environmentally sensitive technologies in manufacturing processes and uses some of the world’s most advanced equipment for emission checking and control.
Tata Motors has led the Indian automobile industry’s anti-pollution efforts through a series of initiatives in effluent and emission control. The company introduced emission control engines in its vehicles in India before the norm was made statutory. All its products meet required emission standards in the relevant geographies. Modern effluent treatment facilities, soil and water conservation programmes and tree plantation drives at its plant locations contribute to the protection of the environment and the creation of green belts.
Tata Motors’ vehicles are exported primarily to Europe, Africa, the Middle East, South and South East Asia and Australia. The company also has assembly operations in Malaysia, Bangladesh, Ukraine, Kenya and Russia. Over the years, the company has received more than 50 awards from the government of India’s Engineering Export Promotion Council, for its export initiatives. While currently about 14 per cent (as on March 31, 2005) of its revenues are from its international business, the company intends to increase its international business through organic and inorganic growth routes.
- Tata Motors has been chosen as India’s Most Trusted Brand in cars in a Readers Digest-AC Nielsen consumer survey in 2006.
- Tata Motors’ mini-truck, Ace, which has created an all-new category in the commercial vehicles market, received the BBC-Top Gear’ Design of the Year 2006. The company’s Starbus low-floor city bus and the Novus heavy truck were adjudged second and third respectively.
Tata Motors has manufacturing plants at Jamshedpur (eastern India), Pune (west), and Lucknow (north) as well as a nation-wide sales, service and spare parts network focused on providing users with easy-access service solutions.
TATA MOTORS FINANCE:
|Tata Motorfinance (TMF), the auto financing arm for Tata Motors, came into existence in June 2003. This was a common front-end, jointly formed by BHPC (Bureau for Hire Purchase and Credit) of Tata Motors and the asset financing arm of Tata Finance. This company was a virtual entity, with both the divisions maintaining their legal identity, and was in the market for exclusively financing Tata Motors vehicles. Subsequently Tata Finance was merged with Tata Motors and in April 2005 TMF became a division of Tata Motors, TMF has emerged as the third largest vehicle financier in the domestic
FY 2006-07 was another outstanding year for the Company, which recorded peak performance on almost all
major financial parameters. The Company retained its position as the largest automobile company in India in
terms of revenue. Overall sales volume at 580,280 vehicles was higher by 28% as compared to previous year,
crossing the half a million mark for the first time and turnover at Rs.31,885 crores was higher by 33% than in
FY 2005-06. The Company strengthened its position in the domestic commercial vehicle market with a 2.6%
points gain in its market share to 63.8%, and also retained its position as the second largest player in the domestic
passenger vehicle market with a 16.5% market share. Export volumes at 53,474 units grew by 6.5% as compared
to the previous year. The EBIDTA at 12.9% were lower than 13.9% achieved in FY05-06, mainly due to input price
increase which could not be fully absorbed from the market. The Profit Before Tax at Rs.2,573.18 crores was 25%
higher than Rs.2,053.38 crores in FY05-06. After providing for current and deferred taxes, the Profit After Tax was
Rs.1,913.46 crores (FY 2005-06: Rs.1,528.88 crores), an increase of 25% over the previous year.
In FY04, the company achieved the highest-ever revenues in its history and posted its highest net Profit of Rs8.1bn.
Tata Motors and Fiat India Private Limited announced the commencement of the new Tata-Fiat dealer network to sell both Tata and Fiat branded cars, along with service and sales of spare parts, in 11 cities across India.
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