RESULT AND PROFITS

After the economic downturn and difficult market condition in the

automotive sector globally in 2008-2009, during the year, economies across

the world (with a few expectation) showed signs of recovery and growth.

The Indian economy bounced back quickly and

strongly growing at 7.2% in 2009-2010. the automotive sector in India

started the year steadily, gathered momentum in different of the second half

of the year and

ended the year with a record growth and performance.

The company turn-over ,in this back-ground and

with a strong portfolio coupled with successful launch of new product and

variants in commercial vehicle and passenger vehicle, was Rs 38,364

crores , a growth of 34.3% over the previous year. The volume growth

coupled with other action on pricing and cost reduction enabled the company

to achieve significant improvement in EBEIDTA margin to 11.7% (6.8% in

2008-09). The profit before tax of Rs 2,830 crores and a profit after tax of Rs
2,240 crores also grow significantly over the previous year by 179.1% and

123.7% respectively.

The performance of the company and its subsidiaries is

elaborated in the management discussion and analysis report which form a

part of this annual report.

The tata motor, group turnover was Rs 95,567 crores a

growth of 29% over previous year contributed mainly by market recovery,

improved realization & successful launch of new product. Consolidated

profit before tax was Rs.3,523 crores (loss of Rs.2,129 crores in 2008-09)

and consolidated profit for the year was Rs.2,571 crores (loss of Rs.2,505

crores in 2008-09).

INTRODUCTION
Tata group Established under the parent company in 1945. Tata Motors

Limited has become India’s largest automobile company. It was the first

Indian automobile company to list on the New York Stock Exchange. Tata

Motors began manuf- facturing commercial vehicles in 1954 with a 15-year

collabo- ration agreement with Daimler Benz of Germany.

This partnership has led Tata Motors to not only

become India’s largest automobile company but also India’s largest

commercial vehicle manufacturer; the world’s top five manufactures of

medium and heavy trucks and the world’s second largest medium and heavy

bus manufacturer. Having just entered the passenger vehicles market

segment in 1991, Tata Motors now ranks second in India’s passenger vehicle

market.

Tata has enjoyed the prestige of having developed Tata Ace,

India’s first indigenous light commercial vehicle; Tata Safari, India’s

first sports utility vehicle; Tata Indica,

India’s first indigenously manufactured passenger car; and the Nano, the

world’s least expensive car.

CURRENT SITUATION
COMPANY OVERVIEW:

Tata Motors has diversified in to a range of activities all related to the

automobile industry. Through its subsidiaries, the company is involved in

engineering and automotive products, construction equipment

manufacturing, automotive vehicle component manufacturing and supply

chain activities, machine tools and factory automation products, high

precision tooling, electronic components for automotive and computer

applications, and automotive retailing and service operations.

The Tata Motors group is a passenger and commercial

vehicle manufacturer based in India. The motor group was established in

1945 as part of the larger Tata Group. They have long been known for their

commercial vehicles and in the past ten years entered into the passenger car

market.

Currently, Tata Motors has a line of five passenger

vehicles and a large line of commercial vehicles producing pickups, trucks,

tractor trailers, tippers, and buses. Both product lines of the Tata Motors

group have seen success, but much of this has been built upon the more

deeply established commercial vehicle product line.

 Tata Motors commercial line has been established for

several years in many market segments such as Europe, Africa, The Middle

East, Australia, Southeast Asia, & South Asia. Tata Motors has expanded

their business and market share around the world through a series of

acquisition. In 2004, they acquired Daewoo commercial vehicle Company

in South Korea which was South Korea’s second largest truck manufacturer.

This acquisition gave Tata Motors a significant presence in the Korean

market.

They have also entered into joint ventures with

companies such as Thonburi Automotive in 2006, which allowed them to

manufacture and market pickup trucks in Thailand. “We think it makes

sense for Tata to expand through acquisition (as it did in tea and steel) than

spend a decade to build the business”(Lehman Brothers).

Tata Motors have been making global headlines in the auto industry lately;

the largest news being their acquisition of Jaguar and Land Rover from Ford.

“Tata paid 2.3 billion dollars to Ford for the two brands that cost Ford 5.3

billion” (Carty, USA Today). This is a major step for the company because it

catapults them into the luxury car business which they are not known for at
this time. Tata, like many new business it acquires, is allowing this new

segment of the business to be run by previous management since they have

more experience in the luxury automotive business.

Tata will give us some space. They want us to run our

business, be a premium British car company” (Mike O’ Driscoll, managing

director of Jaguar). This is yet another large acquisition for the Tata Motors

group and could create great success for the company in the near future.