Tata Motors

Financial Data
Jun 21, 2019

Read more about Tata Motors

Company overview/background
Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive
Company) is an Indian multinational automotive manufacturing company headquartered
in Mumbai, India, and a member of the Tata Group. Its products include passenger cars,
trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles.
Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra,
becoming the first Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile. In 1998, Tata launched the first fully indigenous Indian passenger
car, the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors
acquired the South Korean truck manufacturer Daewoo Commercial Vehicles Company in
2004 and purchased Jaguar Land Rover from Ford in 2008. Tata motors has manufacturing
facilities in Sanand,(Gujarat), Pimpri(Maharashtra), Jamshedpur (Jharkhand), Lucknow
(U.P.), Dharwad (Karnataka)a and Pantnagar (Uttarakhand).with combined annual capacity
of 5,64,000 units.
Product portfolio

Source: Industry, CRISIL Research

Content
  Key/recent developments

 Regulatory developments

 Operational Performance

 Portfolio mix
Key/recent developments

 Tata Motors may drop small diesel cars from its portfolio. which currently sells its
entry-level hatchback Tiago with 1-litre diesel engine, compact sedan Tigor with
1.05-litre powertrain and older models like Bolt, Zest with a 1.3-litre diesel engines
after the implementation of BS-VI.

 Tata Motors also plans to start rolling out CNG cars in FY21, gradually reducing its
dependence on diesel vehicles. It has not yet decided whether it will altogether drop
diesel variants of its models like the Tiago, Tigor and Zest. Other products like the
compact SUV Nexon and the recently-launched SUV Harrier will be upgraded to
meet the new emission norms.
Regulatory developments

 CAFE Norms: In April 2017, The corporate average fuel efficiency (CAFE) norms,
introduced in India for the first time, is targeted at reducing the carbon footprint of the
automobile industry. It require cars to be 10% or more between 2017 and 2021. The
mileage improvement will be decided on the basis of litres of fuel consumed by a
vehicle to run 100km. Corporate Average mean Sales-volume weighted average for
every automaker. The annual corporate average CO2 emissions for every automaker
should be <130g/km till 2022. Reducing kerb weight, use of less frictional tyres along
with improvement in engine technology to aid adherence to CAFE norms

 Crash Test norms: (October 2017): The new crash test norms for full-frontal impact,
off-set-frontal impact and side impact have been in force on all new cars launched in
India. Expected cost escalations are Rs 3,000-5,000 for small cars and Rs 4,000-6,000
for UVs and Large cars - Rs. 4,000-6,000.

 Pedestrian Protection Safety norms: (October 2018): Expected price hike: Small cars -
Rs 3,000-5,000 & UVs and Large cars - Rs. 4,000-6,000.
  Safety norms: (July 2019): Installation of compulsory airbags,seat belt reminders,
reverse parking sensors, speed limit reminders in all cars and a manual override
switch for central locking systems.
Operational Performance
Performance overview

Source: SIAM, CRISIL Research

Portfolio mix
Domestic and Export sales trend
Source: SIAM, CRISIL Research