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MOTORS
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INTRODUCTION
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OPERATIONS
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• 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.
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• 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
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SUBSIDIARIES
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JOINT VENTURES
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COMMERCIAL VEHICLES
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ELECTRIC VEHICLES
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• 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
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TATA NANO
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DESTINATON ZERO
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TATA DAEWOO & TATA
TECHNOLOGIES LIMITED
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TATA MOTORS
PRODUCT STRATEGY
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TATA MOTORS PRICE &
PRICING STRATEGY
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TATA MOTORS PLACE &
DISTRIBUTION STRATEGY
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TATA MOTORS
PROMOTION &
ADVERTISING STRATEGY
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ABOUT TATA MOTORS
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RESEARCH AND
METHODOLOGY
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• 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.
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PREFERENCE FOR
TATA NANO
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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).
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• 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.
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THE EXPLANATION FOR
THE FINDINGS
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CONCLUSIONS
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RECOMMENDATIONS
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REFERENCES
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APPENDICES
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• 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.
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CURRENT VALUATION OF
TATA MOTORS
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• 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.
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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.
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TATA MOTORS PROBLEMS
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INDUSTRY OVERVIEW
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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.
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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.
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FUTURE PLANS OF TATA
MOTORS
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