Overview

Tata Motors Ltd ( NYSE: TTM) (NSE:TATAMOTORS, TATAMTRDVR) is a part of the USD113 billion Tata group founded by Jamsetji Tata in 1868, Tata Motors is among the world’s leading manufacturers of automobiles. The company believe in ‘Connecting aspirations’, by offering innovative mobility solutions that are in line with customers' aspirations. Tata Motors is India's largest automobile manufacturer, and the company continue to take the lead in shaping the Indian commercial vehicle landscape, with the introduction of leading-edge powertrains and electric solutions packaged for power performances and user comfort at the lowest life-cycle costs. The company's new passenger cars and utility vehicles are based on Impact Design and offer a superior blend of performance, driveability and connectivity.1

Tata Motors' subsidiary, Jaguar Land Rover is Britain’s largest automotive manufacturer which designs, manufactures and sells some of the world’s best-known premium cars. The two iconic brands of JLR include Jaguar, with a range of luxury sedans, sports cars and luxury performance SUVs, and Land Rover, encompassing a portfolio of premium all-terrain vehicles.

Tata Motors has a global footprint with operations in the UK, South Korea, South Africa and Indonesia through a strong global network of 97 subsidiary and 9 associate companies, including Jaguar Land Rover in the UK and Tata Daewoo in South Korea

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Jaguar Land Rover

Jaguar Land Rover, part of Tata Motors since 2008, is Britain’s largest automotive manufacturer which designs, manufactures and sells some of the world’s best-known premium cars.2

The two iconic brands of Jaguar Land Rover are Jaguar, with a range of luxury sedans, sports cars and luxury performance SUVs, and Land Rover, encompassing a portfolio of premium all-terrain vehicles.

The company has principal automotive manufacturing facilities in the United Kingdom at Solihull, Castle Bromwich, Halewood, Gaydon, the Engine Manufacturing Centre at Wolverhampton, and headquarters at Whitley. The company also has a manufacturing footprint in China through a joint venture, a facility in Nitra, Slovakia, contract manufacturing in Austria and local assembly operations in Brazil and India.

Jaguar Land Rover completed ten years of association with the Tatas in 2018. In that period, sales increased from less than 200,000 units a year to more than 600,000 units. The company has set new standards for engineering excellence, automotive technologies and advanced design, reflected by multiple awards for its various models. The company made an investment of GBP 3.8 billion in FY19 in new automotive technologies, production and R&D facilities in line with its Autonomous, Connected, Electric and Shared (ACES) strategy.  The company is committed to deliver long-term growth through award-winning products and services for its customers.

Company History

Founded in 1945, Tata Motors released its first commercial vehicle in 1954 and now has six factories across India. Tata Motors is India's largest automobile company, the world's third-largest bus maker and fourth-largest truck maker. In September 2004 Tata Motors bacame India's first company in the engineering sector to be listed on the New York Stock Exchange. In 2005 Tata Motors formed a strategic partnership with the Italian automaker Fiat; took over the two iconic British brands Jagur and Land Rover from the US-based Ford Motors in 2008; established the Tata Daewoo Commercial Vehicle by acquiring Korea's second largest truck maker Daewoo Commercial Vehicle in 2004; took over the reputed Spanish bus and coach manufacturer Hispano Carrocera; established a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and selected international markets in 2006; and in the same year formed another joint venture with the Thonburi Automotive Assembly Plant Company of Thailand th manufacture and market the Company's pickup trucks in Thailand. Tata Motors began exporting its cars in 1961 and has made inroads into Europe, Africa, the Middle East, South East Asia, South Aisa and South America. the company is operating joint-venture as-sembly plants in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. 3

In January, 2008. Tata motors unveiled its people's car, the Tata Nano, which is halled as th most inexpensive and innovative car in the world, and began mass producing it in India in March 2009, as promised, to the Indian people.

Key Subsidiaries

Jaguar Land Rover Automotive Plc

Jaguar Land Rover brings together two prestigious British car brands. Tata Motors acquired the brands from Ford in 2008, merging them into a single company in 2013. One of the world’s leading premium car brands, Jaguar Land Rover presents the future of sustainable mobility. 4

Tata Motors European Technical Centre PLC (TMETC)

Based in Coventry, UK, Tata Motors European Technical Centre PLC (TMETC) is a wholly-owned subsidiary of Tata Motors. As a centre of excellence for automotive design and engineering, TMETC is an active partner in a number of collaborative projects in low carbon technology, and electric and hybrid vehicle technology for future passenger and light commercial vehicles.

Tata Motors Insurance Broking and Advisory Services Limited (TMIBASL)

A wholly-owned subsidiary of Tata Motors, TMIBASL provides end-to-end insurance solutions in the retail sector with a focus on the automobile sector. TMIBASL offers services to various OEMs in the passenger vehicle, commercial and construction equipment markets, including to it.

TMF Holdings Limited

TMF Holdings Limited (TMFHL) - a wholly owned subsidiary of the Company, is the vehicle financing arm under the brand "TMF Holdings Limited

TML Distribution Company Limited (TDCL)

TML Distribution Company Limited, or TDCL, its wholly-owned subsidiary, was incorporated on March 28, 2008. TDCL provides distribution and logistics support for distribution of its products throughout India.

TRILIX Srl

Trilix Srl, founded in 2006, is a mid-sized commercial art and graphic design company, located in Nichelino, Italy.

Tata Technologies Limited

A global leader in engineering services outsourcing and product development IT services to the global manufacturing industries, Tata Technologies is a company of innovators, specialists in the design engineering space, who apply cutting-edge technologies to provide competitive advantage to customers in the manufacturing sector. The company is headquartered in Singapore.

Tata Marcopolo Motors Limited (TMML)

Tata Marcopolo Motors Limited (TMML) is a 51:49 joint venture company of Tata Motors Ltd. (TML) India and Marcopolo S.A. Brazil for manufacturing of buses in India.

TML Holdings Pte. Limited

TML Holdings Pte. Limited is a 100% subsidiary of Tata Motors with effect from 2008.

Tata Daewoo Commercial Vehicle Company Limited

Since its inception in 2004, Tata Daewoo Commercial Vehicle has established a solid foothold in the industry as one of the nation’s most reputed truck makers. Today, it exports its products to more than 60 countries. Tata Daewoo has worked with Tata Motors, its parent company to develop a medium and long-term plan to grow into a global market leader.

Plant Locations

At Tata Motors, striving for perfection is an on-going and high priority target. To achieve this target, Tata Motors has established top-of-the-line manufacturing, R&D and design facilities in more than 26 sites across Asia, Africa and Europe.

Total number of locations where business activity is undertaken by the Company

India
10 Manufacturing Facilities
2 R&D/Engineering And Design Centres

China
1 Jv Vehicle And Engine Manufacturing Facility    

Europe
2 Manufacturing Facilities
1 R&D/Engineering And Design Centre

North America   
1 R&D/ENGINEERING AND DESIGN CENTRE

United Kingdom    
5 Manufacturing Facilities
3 R&D/Engineering And Design Centres
 

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International Locations

Through subsidiaries, joint ventures and associate companies, the Company operates in over 125 countries and has over 8,400 customer touch points. The Company has manufacturing facilities in the

  • UK,
  • South Korea,
  • South Africa,
  • Indonesia,
  • China,
  • Brazil,
  • Austria
  • and Slovakia.

National Locations:

The Company’s manufacturing locations in India are situated at

  • Jamshedpur (Jharkhand),
  • Pune (Maharashtra),
  • Lucknow (Uttar Pradesh),
  • Pantnagar (Uttarakhand),
  • Sanand (Gujarat)
  • and Dharwad (Karnataka).

Products and  Brands

Cars

  • Altroz
  • Tigor
  • Tiago

SUVs

  • Safari
  • Harrier
  • Nexon

Jaguar Land Rover brands.

  • JAGUAR
  • JAGUAR SV
  • JAGUAR CLASSIC
  • LAND ROVER
  • LAND ROVER SV
  • LAND ROVER CLASSIC
  • RANGE ROVER
  • DISCOVERY

Bus

  • Starbus
  • Starbus Ultra
  • Cityride
  • Electric Bus
  • Tata Winger
  • Tata Magic

Trucks

  • Tata Ace
  • Tata Intra
  • Tata Yodha Pickup
  • LCV Trucks
  • ICV Trucks
  • Ultra ICV Trucks
  • Tata Signa
  • ILCV Tippers
  • M&HCV Rigid Trucks
  • M&HCV Tractor Trailer
  • M&HCV Construck
  • Ultra MHCV

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Business Overview

Passenger Vehicles in India

Industry-wide sales of Passenger Vehicles in India decreased by 17.3% in FY 2019-20, compared to a 2.8% growth in FY 2018-19, while Utility Vehicles sales remained flat during FY 2019-20 as a result of weak consumer sentiment, rising cost of vehicle ownership, liquidity stress and general economy slowdown. The company's Passenger Vehicle sales in India decreased by 37.4% to 1,31,796 units in FY 2019-20 from 2,10,500 units in FY 2018-19, due to macro headwinds impacting the industry, its focus on retail sales for seamless transition to BSVI and streamlining the distribution and retail infrastructure. During the FY 2019-20 the Passenger Vehicle retail sales were 13% higher than Passenger Vehicle wholesales. For smooth transition to BSVI, the Company was focused on stock reduction through retail acceleration. Tata Motors has achieved seamless transition to BSVI with its “New Forever” range.5

The company sold 71,719 units in the Passenger Car category (Tata-brand vehicles in India) in FY 2019-20, compared to 1,31,035 units in FY 2018-19. In January 2020, the company launched, Altroz (a premium hatchback and the first model from ALFA platform) and the company sold 8,426 units. The company's market share for Passenger Cars in India was lower at 4.2% in FY 2019-20, as compared to 5.9% in FY 2018-19.

In the Utility Vehicles category, the company sold 60,077 units in FY 2019-20, representing a decrease of 24.4% from 79,465 units in FY 2018-19. The company's market share of Utility Vehicles in India decreased and currently stands at 5.6% in FY 2019-20, compared to 7.0% in FY 2018-19.

Commercial Vehicles in India

Industry sales of Commercial Vehicles decreased by 30.0% to 7,26,762 units in FY 2019-20 from 10,38,834 units in FY 2018-19. Industry sales in the MHCVs has declined the most by 51.9% at 1,32,272 units in FY 2019-20, as compared to 2,74,750 in FY 2018-19. Industry sales of ILCV reported a decrease of 29.0% to 89,066 units in FY 2019-20, from 1,25,471 units in FY 2018-19. Industry sales of SCV & Pickups reported a decrease of 20.2% to 411,352 units in FY 2019-20, from 5,15,491 units in FY 2018-19. Industry sales of CV Passenger reported a decrease of 23.6% to 94,072 units in FY 2019-20, from 1,23,122 units in FY 2018-19. Despite several challenges, through focused management efforts the company achieved seamless transition into BS VI. As a result, its BS IV inventory in the ecosystem was near zero.

MHCVs in India

The company's sales in the MHCVs category in India decreased by 49.7% to 75,918 units in FY 2019-20, as compared to sales of 1,51,004 units in FY 2018-19. The decline was witnessed on account of higher capacity arising from axle load regulations, poor freight availability, the falling freight rates, slowdown in the infrastructure developments, delayed payments to contractors, liquidity stress and overall sharp decline in the economy. The company increased the market share in this segment by 240 basis points thereby continuing to drive its competitiveness.

ILCVs in India

The company's sales in the ILCVs in India segment decreased by 26.2% to 42,077 units in FY 2019-20, from 57,015 units in FY 2018-19. The ILCV industry in India declined mainly due to lack of replacement demand, slowdown in economy, liquidity constraints and decline in discretionary spending. The company increased the market share in this segment by 180 basis points thereby continuing to drive its competitiveness.

SCVs & Pickups in India

The company's sales in SCVs & Pickups segment in India decreased by 24.6% to 1,55,790 units in FY 2019-20 from 2,06,655 units in FY 2018-19. The SCV segment is heavily dependent on the ‘First Time User’ category of customers and thus has been impacted due to the liquidity crunch, higher interest rates and difficulty in funding from the NBFCs. The company lost market share in the pick-up segment and intend to redress the same with the launch of the new Intra platform.

CV Passenger Vehicles in India

The company's sales in CV Passenger Vehicles segment in India decreased by 28.9% to 38,482 units in FY 2019-20 from 54,114 units in FY 2018-19, due to overall decline in industry volume.

Tata Commercial Vehicles and Tata Passenger Vehicles — Exports

International business has consistently expanded since its inception in 1961. Tata Motors has a global presence in more than 46 countries, including all South Asian Association for Regional Cooperation countries, South Africa, Africa, Middle East, Southeast Asia and Ukraine. The company markets a range of products including M&HCV trucks, LCV trucks, buses, pickups and small commercial vehicles.

The company's overall sales in international markets decreased by 41.4% to 31,144 units in FY 2019-20 as compared to 53,140 units in FY 2018-19. The company's top five export destinations for vehicles manufactured in India, were Bangladesh, Nepal, Sri Lanka, Kuwait and Tanzania, which accounted for 73% of the exports of Commercial Vehicles, while Nepal, Bangladesh, Tanzania, Bhutan and Sri Lanka were top 5 export destinations for Passenger Vehicles and accounted for 99% of exports of Passenger Vehicles. The company intend to strengthen its position in the geographic areas Tata Motors is currently operating in and explore possibilities of entering new markets with similar market characteristics to the Indian market. Commercial vehicles exports were 29,664 units in FY 2019-20, as compared to 51,119 units in FY 2018-19. Global economic slowdown and liquidity crunch impacted the industry volumes across most of its major markets, for instance SAARC, Middle east and African markets witnessed a decline in volumes in FY 2019-20 as compared to FY 2018-19. The company's market shares in almost all focus markets have either improved or sustained as compared to FY 2018-19. The company also corrected its distributor stocks which had built up due to the sudden drop in demand and completed many prestigious orders with major municipalities and government bodies across the globe. Passenger Vehicles exports were at 1,480 units in FY 2019-20, compared to 2,021 units in FY 2018-19. 200 Units of Hexa were supplied to Bangladesh army.

Tata Daewoo Commercial Vehicle Co. Ltd. or TDCV’s, its subsidiary Company which engages in the design, development and manufacturing of MHCVs, witnessed a decrease in overall sales by 22.2% to 5,190 units in FY 2019-20 from 6,672 units in FY 2018- 19. In its domestic market (South Korea), TDCV’s sales decreased by 18.1% from 4,371 units in FY 2018-19 to 3,581 units in FY 2019-20, primarily due to lower industry volumes, aggressive discounting and marketing strategies of importers and impact of COVID-19 pandemic in fourth quarter of FY 2019-20. The combined market share was 20.5% in FY 2019-20 as compared to 21.1% in FY 2018-19. The export market scenario continued to remain challenging in FY 2019-20 due to factors such as continuing statutory regulations to reduce imports, global economic downturn and COVID-19 pandemic which has adversely impacted overall sales. The export sales showed reduction of 30.1% from 2,301 units in FY 2018-19 to 1,609 units in FY 2019-20.

Tata and other brand vehicles – Vehicle Financing

Through its wholly owned subsidiary TMF Holdings Ltd. and its step down subsidiaries Tata Motors Finance Ltd. (TMFL) and Tata Motors Finance Solutions Ltd. (TMFSL), the company provide financing services to purchasers of its vehicles through independent dealers, who act as its agents for financing transactions, and through its branch network. TMF Group disbursed `15,029 crores and `21,993 crores in vehicle financing during FY 2019-20 and FY 2018-19, respectively. During FY 2019-20 and FY 2018-19, approximately 30% and 26%, respectively, of its vehicle unit sales in India were made by the dealers through financing arrangements with Company’s captive financing subsidiary. As at March 31, 2020 and 2019, TMF Group’s customer finance receivable portfolio comprised 6,24,354 and 5,77,399 contracts, respectively. The company follow specified internal procedures, including quantitative guidelines, for selection of its finance customers and assist in managing default and repayment risk in its portfolio. The company originate all of the contracts through its authorized dealers and direct marketing agents with whom Tata Motors has agreements. All of its marketing, sales and collection activities are undertaken through dealers or by TMF Group.

Jaguar Land Rover

In FY 2019-20, Jaguar Land Rover wholesale volumes (excluding its China Joint Venture) were 4,75,952 units down 6.3%, compared to FY 2018-19, and wholesale volumes of China Joint Venture were 49,450 units, reflecting a 13.9% decrease compared to the 57,428 units in FY 2018-19. The decrease in wholesales volumes (excluding its China Joint Venture) in FY 2019-20 primarily reflects the decline in sales in the fourth quarter (a decrease of 20.3% as compare to FY 2018-19) as a result of the COVID-19 pandemic. By region, Jaguar Land Rover wholesale volumes (excluding its China Joint Venture) were 1,35,766 in North America (an increase of 1.9% as compared to FY 2018-19), but decreased in other regions at 14.2%, 8.8%, 7.3% and 4.6% respectively in other overseas market, Europe, UK and China. Wholesale volumes recovered well in the 9 months to December 31, 2019, (an increase of 8.5% as compare to the same period in FY 2018-19), before the COVID-19 pandemic impacted sales in the fourth quarter of FY 2019-20. By model, the increase of wholesale volumes of the allnew Range Rover Evoque (an increase of 44.2% year-on-year), the commencement of sales of its all-new Land Rover Defender and the award-winning Jaguar I-PACE (an increase of 2.0% year-on-year) were offset by decline in sales of other models, including the Land Rover Discovery Sport.

Jaguar wholesale volumes were 1,25,820 units, down 18.2% compared to FY 2018-19, with increased sales of the all-electric I-PACE (up 2.0%), were offset by lower sales of other models.

Land Rover wholesale volumes were 3,50,132 units, down slightly 1.1% compared to FY 2018-19, as significantly higher sales of the allnew Range Rover Evoque (an increase of 44.2% as compared to FY 2018-19) and the start of sales of the all-new Land Rover Defender largely offset lower sales of other models

Jaguar Land Rover’s performance in key geographical markets on a retail basis:

Retail volumes (including retail sales from the China Joint Venture) in FY 2019-20 declined by 12.1% to 5,08,659 units from 5,78,915 units in FY 2018-19 with over two-thirds of that volume decline occurring in the fourth quarter as the COVID-19 pandemic impacted sales and the supply of vehicles across all regions.

United Kingdom

Industry vehicle sales fell 10.9% in FY 2019-20 in the United Kingdom as diesel vehicle sales decline 28.5% year-on-year and continued volatility in the run up to the general election in December 2019 and uncertainty related to Brexit and the subsequent transition period which is currently scheduled to end on December 31, 2020. Jaguar Land Rover retail volumes decreased by 9.6% to 106,612 units in FY 2019-20 compared to 1,17,915 units in FY 2018-19. By brand, Jaguar retails were 32,533 vehicles in FY 2019-20, down 15.5% compared to 38,515 vehicles in FY 2018-19, and Land Rover retails were 74,079 vehicles, down 6.7% compared to 79,400 vehicles in FY 2018-19.

North America

Economic performance in North America weakened in FY 2019-20, with interest rate reductions even prior to the monetary policy actions implemented to combat the economic impact of the COVID-19 pandemic and industry vehicle sales down 3.9% year-on-year. Jaguar Land Rover retails also decreased, down 7.5% year on year, to 129,346 units in FY 2019-20 compared to 1,39,778 units in FY 2018-19. By brand, Jaguar retails were 30,095 vehicles in FY 2019-20, down 18.1% compared to 36,768 vehicles in FY 2018-19, and Land Rover retails, were 99,251, down 3.6% compared to 1,03,010 last year.

Europe

impact of Brexit and rising protectionism in the EU with economic activity in Germany and Italy, diesel uncertainty, the reduction in subsidies for electric vehicles, notably in the Netherlands impacted sales in Europe. Industry volumes in Europe were down 4.8% but Jaguar Land Rover retail sales declined further, down 16.1% year on year to 1,07,037 vehicles in FY 2019-20 from 127,566 in FY 2018-19, By brand, Jaguar retails were 35,335 vehicles in FY 2019-20, down 28.6% compared to 49,474 vehicles in FY 2018-19, and Land Rover retails were 71,702 in FY 2019-20, down 8.2% compared to 78,092 vehicles in FY 2018-19.

China

Economic growth continued to slow in China during FY 2019-20 as weaker market conditions and trade tension with the US continued. Further the COVID-19 pandemic has resulted in nationwide shutdown in China for most of the fourth quarter. As a result industry vehicle sales declined by 16.6% year on year however Jaguar Land Rover retail volumes (including sales from the China Joint Venture) decreased by less than the industry, down 8.9% (despite a strong recovery in the second and third quarter, with double digit year-on-year growth) to 90,124 units in FY 2019-20 from 98,922 units in FY 2018-19. By brand, Jaguar retails were 26,061 vehicles in FY 2019-20, down 20.5% compared to 32,797 vehicles in FY 2018-19, and Land Rover retails were 64,063 vehicles in FY 2019-20, down 3.1% compared to 66,125 vehicles in FY 2018-19.

Other Overseas markets

Conditions in other overseas markets remained challenging in FY 2019- 20 with bushfires in Australia, tensions and conflict in the Middle East, and sluggish growth in Russia which hampered demand and the trade tensions between the US and China impacting sales in Asia, notably South Korea. Jaguar Land Rover’s retail volumes in other overseas markets decreased by 20.3% to 75,540 vehicles in FY 2019-20 compared to 94,734 units in the FY 2018-19. By brand, Jaguar retails were 16,569 vehicles in FY 2019-20, down 26.8% compared to 22,644 vehicles in FY 2018-19, and Land Rover retails were 58,971 vehicles in FY 2019-20, down 18.2% compared to 72,090 vehicles in FY 2018-19.

Jaguar Land Rover’s Sales & Distribution

As at March 31, 2020, Jaguar Land Rover distributes its vehicles in 124 markets for Jaguar and 128 markets for Land Rover globally. Sales locations for vehicles are operated as independent franchises. Jaguar Land Rover are represented in its key markets through its National Sales Company’s ('NSC’s') as well as third party importers. Jaguar and Land Rover have regional offices in certain select countries that manage customer relationships and vehicle supplies and provide marketing and sales support to their regional importer markets. The remaining importer markets are managed from the United Kingdom.

Jaguar Land Rover products are sold through a variety of sales channels: through its dealerships for retail sales; for sale to fleet customers, including daily rental car companies; commercial fleet customers; leasing companies; and governments. Jaguar Land Rover do not depend on a single customer or small Group of customers to the extent that the loss of such a customer or Group of customers would have a material adverse effect on its business.

As at March 31, 2020, Jaguar Land Rover global sales and distribution network comprised 23 NSCs, 77 importers, 2 export partners and 2,874 franchise sales dealers, of which 1,323 are joint Jaguar and Land Rover dealers.

Financial Overview

In FY 2019-20 income from operations including finance revenues decreased by 13.5% to Rs 2,61,068 crores in FY 2019-20 from Rs 3,01,938 crores in FY 2018-19. The decrease was mainly attributable to lower sales volumes from both Tata Motors and Jaguar Land Rover and an unfavorable currency translation from GBP to INR. The net loss (attributable to Shareholders of its Company) was Rs 12,071 crores in FY 2019-20, as compared to a loss of Rs 28,826 crores in FY 2018-19. In FY 2019-20 Tata Motors has taken an impairment charge and provision for onerous contract of Rs 2,549 crores for its Passenger Vehicle segment as against Rs 27,838 crores in FY 2018-19 for Jaguar Land Rover business. The loss in FY 2019-20 was driven by the subdued performance of Tata Motors along with Jaguar Land Rover, including higher variable marketing expenses/selling costs

Automotive operations

Automotive operations are its most significant segment, accounting for 99.3% and 99.2% of its total revenues in FY 2019-20 and FY 2018- 19, respectively. In FY 2019-20, revenue from automotive operations before inter-segment eliminations was Rs 2,59,292 crores as compared to Rs 2,99,656 crores in FY 2018-19.

The company's automotive operations segment is further divided into four reporting segments: Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover and Vehicle financing.

In FY 2019-20, Jaguar Land Rover contributed 80% of its total automotive revenue compared to 75% in FY 2018-19 (before intrasegment elimination) and the remaining 20% was contributed by Tata and other brand vehicles and Financing in FY 2019-20 compared to 25% in FY 2018-19.

Geographical Breakdown

As a result of account of COVID-19 pandemic, there is a significant reduction in revenue across most geographical markets in FY 2019- 20, the decline was lower in United States and China as compared to other economies. In FY 2019-20 percentage of revenues in China and the United States have improved as compared to FY 2018-19. China witnessed a double digit growth in volumes in second and third quarter of FY 2019-20 and a decline on account of impact of COVID-19 in fourth quarter of FY 2019-20, thus resulting in marginal decline in revenues as compared to FY 2018-19. Further, in FY 2019-20, the revenue of its subsidiary in South Korea, TDCV, declined due to lower industry volumes and aggressive discounting and marketing strategy of importers. Due to decreased revenue in India, on account of lower volumes as explained above in FY 2019-20, the proportion of its net sales earned from geographic markets outside of India increased from 77.4% in FY 2018-19 to 82.0% in FY 2019-20

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The company's total consolidated revenue from operations including finance revenue, decreased by 13.5% to Rs 2,61,068 crores in FY 2019-20 from Rs 3,01,938 crores in FY 2018-19. Revenue from the sale of vehicle decrease to Rs 2,18,983 crores in FY 2019-20 as compared to Rs 2,58,567 crores, decrease of 15.3%. The company sold 9,61,463 vehicle in FY 2019-20, as compared to 1,274,072 vehicles in FY 2018-19.

The revenue of its Tata brand vehicles including vehicle finance decreased by 32.8% to Rs 51,322 crores in FY 2019-20 from Rs 76,418 crores in FY 2018-19, due to decreased volumes in all vehicle categories. The revenue from Tata commercial vehicle was Rs 36,329 crores in FY 2019-20 as compared to Rs 58,137 crores in FY 2018-19, a decrease of 37.5%. The revenue from Tata Passenger Vehicles was Rs 10,482 crores in FY 2019-20 as compared to Rs 14,470 crores in FY 2018-19, a decrease of 27.6%. The company's revenues from sales of vehicles and spare parts manufactured in India decreased by 36.1% to Rs 43,865 crores in FY 2019-20 from Rs 68,621 crores in FY 2018-19.

The revenue from Passenger Cars in India decreased by 42.5% to Rs 2,832 crores in FY 2019-20 from Rs 4,922 crores in FY 2018-19 and Utility Vehicles decreased by 19.0% to Rs 4,168 crores in FY 2019-20 from Rs 5,143 crores in FY 2018-19. Further, revenues from MHCVs decreased by 53.1% to Rs 14,006 crores in FY 2019-20 from Rs 29,863 crores. ILCVs decreased by 25.8% to Rs 3,693 crores in FY 2019-20 from Rs 4,979 crores in FY 2018-19. Revenues of SCVs & Pickups in India decreased by 25.0% to Rs 3,826 crores in FY 2019-20 from Rs 5,101 crores in FY 2018-19 and CV Passenger Vehicles revenue decreased by 2.5% to Rs 3,936 crores in FY 2019-20 from Rs 4,038 crores in FY 2018-19.

Revenue attributable to TDCV, decreased by 21.1% to Rs 3,134 crores in FY 2019-20 from Rs 3,973 crores in FY 2018-19, primarily due to lower industry volumes, aggressive discounting and marketing strategies of importers and impact of COVID-19 pandemic in March 2020 quarter and reduction in the export sales in FY 2019-20.

Revenue from its Vehicle Financing operations increased by 16.1% to Rs 4,295 crores in FY 2019-20, as compared to Rs 3,700 crores in FY 2018- 19. This is mainly due to increase in average loan book and upfront recognition of excess interest spread (EIS) on the direct assignment transaction undertaken during FY 2019-20 in TMFL.

The revenue of its Jaguar Land Rover business decreased by 6.9% to Rs 2,08,040 crores in FY2019-20 from Rs 2,23,514 crores in FY 2018- 19. This was partially attributed to an unfavorable translation of Rs 4,021 crores from GBP to Indian rupees in FY 2019-20. Excluding currency translation, the revenue of Jaguar Land Rover decreased by 5.1%. There was a decrease of 6.3% in sales volume of Jaguar Land Rover vehicle as compared to FY 2018-19. Out of which Jaguar brand vehicles sales were 1,25,820 units in FY 2019-20 from 1,53,757 units

in FY 2018-19, a decrease of 18.2%, and Land Rover vehicles sales from 3,54,138 units in FY 2018-19 to 3,50,132 units in FY 2019-20, a decrease of 1.1% (volumes excluding the China Joint Venture).

Material costs decreased by 14.9% to Rs 1,67,126 crores in FY 2019-20 from Rs 1,96,321 crores in FY 2018-19, in line with reduction in revenue. As a percentage of revenue material costs are 64.0% in FY 2019-20, as compared to 65.0% in FY 2018-19.

Material costs for Tata Commercial Vehicles and Tata Passenger Vehicles decreased by 34.5% to Rs 34,353 crores in FY 2019-20 from Rs 52,444 crores in FY 2018-19, primarily due to a decrease in volumes. Further, material costs as a percentage of total revenue increased to 72.3% in FY 2019-20, as compared to 72.0% in FY 2018- 19, primarily due to an unfavourable product mix leading to lower contribution margins.

At its Jaguar Land Rover operations, material costs in FY 2019-20 decreased by 7.6% to Rs 1,32,408 crores, from Rs 1,43,349 crores in FY 2018-19. The decrease was partially offset by favourable currency translation from GBP to Indian rupees of Rs 2,384 crores. Excluding currency translation, material costs attributable to its Jaguar Land Rover operations decreased by GB£986 million (6.3%) in FY 2019- 20, mainly due to a 6.3% decrease in sales volume and product mix. Material costs at its Jaguar Land Rover operations as a percentage of revenue decreased to 63.9% in FY 2019-20, from 64.7% in FY 2018-19 (in GBP terms).

The company's employee costs decreased by 8.4% in FY 2019-20 to Rs 30,439 crores from Rs 33,244 crores in FY 2018-19, including the foreign currency translation impact from GBP to Indian rupees

Product development/Engineering expenses represent research costs and costs pertaining to minor product enhancements, refreshes and upgrades to existing vehicle models. These represented 1.6% and 1.4% of total revenues Rs 4,188 crores and Rs 4,225 crores for FY 2019- 20 and FY 2018-19, respectively

Capital expenditures totalled Rs 31,222 crores and Rs  36,636 crores during FY 2019-20 and FY 2018-19, respectively. The company's automotive operations accounted for a majority of such capital expenditures. The company currently plan to invest over Rs 24,900 crores in FY 2020-21 in new products and technologies.

The company's capital expenditures in India during FY 2019-20 related mostly to information the introduction of new products, such as the Tata Altroz, Nexon EV, Tata Harrier facelift version 2020 (ii) the development of planned future products and technologies, and (iii) quality and reliability improvements aimed at reducing operating costs

Capital expenditures for Jaguar Land Rover mainly included expenditures for the global launches of the all-new Land Rover Defender, the refreshed Land Rover Discovery Sport, the refreshed Jaguar XE and the refreshed Jaguar F-TYPE, product development costs for various other future products and other investments manufacturing and technology including the production of the new 6 cylinder Ingenium 3.0-litre gasoline engine and the development and manufacture of next generation EDU’s at the EMC in Wolverhampton, UK as wells as to support battery assembly at Jaguar Land Rover’s plant located at Hams Hall, in North Warwickshire in the UK.

Recent developments

All-new Tata Safari bookings now open; Price announcement on February 22 6

FEBRUARY 04, 2021; Tata Motors on Thursday opened bookings for its flagship SUV, the all-new Safari, whose deliveries are set to commence from February 22.

The new premium SUV can be booked at a refundable amount of Rs 30,000 either online or the nearest Tata Motors’ authorized dealership, the company said in release.

The price announcement and deliveries of the vehicle will begin on February 22, it said.

The auto major had rolled out the first Safari unit from its Pune-based manufacturing facility mid-last month.

"Starting today, Safari is available for display, test drive and bookings across its network. Tata Motors is confident that the Safari will instill a feeling of power, prestige and excitement to its customers,” said Shailesh Chandra, President, Passenger Vehicles Business Unit, Tata Motors.

The new Safari comes packed with features across trim levels.

The base XE variant offers dual airbags, all disc brakes, electronic stability program along with hill hold control and roll over mitigation, making it a well-rounded package for all.

The sought after Multi Drive Modes and touchscreen music system starts from XM variant onwards, the company said in the release.

Besides, the XT variant offers features such as iRA connectivity, fully automatic climate control and the widest panoramic sunroof in the segment, among others, it said.

The top of the line XZ variant offers xenon HID projector headlamps, terrain response modes, six airbags, electronic parking brakes with auto hold, 8.8 touchscreen infotainment with 9 JBL speakers and a subwoofer, powered driver seat and diamond cut 18 alloy wheels along with the panoramic sunroof.

Tata Motors Q3 net profit surges 67% to ₹2,906 cr on festive boost7

29 Jan 2021; Tata Motors Ltd on Friday posted a 67.2% surge in profit for the December quarter, as the easing of coronavirus restrictions led to a pick-up in sales in several of the carmaker's key markets.

Tata Motors, which owns Jaguar Land Rover (JLR), reported a consolidated net profit of ₹2,906 crore for the third quarter, compared with a profit of ₹1,738 crore a year earlier.

The luxury carmaker had reported a loss of ₹314 crore in the previous quarter as the Covid-19 pandemic hit business in several of its key markets.

"Due to a strong festive season and a clear preference for personal mobility, the PV business posted its highest sales in last 33 quarters," Tata Motors Chief Executive Officer and Managing Director Guenter Butschek said.

"In the CV business the M&HCV and ILCV segments led the overall CV growth of over 48% higher domestic salescompared to the previous quarter. The company improved its operational and financial performance by reducing costs, generating free cash flows. Despite the current global challenge of semiconductor supplies, Tata Motors is confident of keeping its performance improvement on track in this quarter to close the year on a high for an even stronger play in FY22," said Butschek.

Retail sales at luxury car unit JLR - which rakes in most of the company's revenue - were up 13.1% from a quarter ago, but still 9% lower than pre-pandemic levels.

Tata Motors last week said it would hike prices of its passenger vehicles to deal with a rise in raw material costs.

Total revenue from operations rose 5.5% to ₹75,654 crore from ₹71,676 crore a year ago.

On a standalone basis, Tata Motors posted a net loss at ₹638.04 crore, against a net loss of ₹1,039.51 crore in the year-ago period. Total revenue, however, rose to ₹14,630.60 crore as compared with ₹10,842.91 crore a year ago.

References

  1. ^ https://www.tatamotors.com/about-us/company-profile/
  2. ^ https://www.tata.com/business/jlr
  3. ^ http://www.tata-daewoo.com/eng_new/company/introduce.php
  4. ^ https://www.tatamotors.com/about-us/subsidiaries/
  5. ^ https://www.tatamotors.com/wp-content/uploads/2020/08/03045333/annual-report-2019-2020.pdf
  6. ^ https://www.moneycontrol.com/news/technology/auto/all-new-tata-safari-bookings-now-open-price-announcement-on-february-22-6446971.html
  7. ^ https://www.livemint.com/companies/company-results/tata-motors-q3-net-profit-surges-67-to-rs-2-906-cr-on-festive-boost-11611917494747.html
Created by Asif Farooqui on 2021/02/11 13:35
     
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