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  • 1. Tata Motors and the Automotive Industry The Smart People AKHILESH SHUKLA, IMRAN KHAN, ANNURAJ SINGH, SANJEEV KUMAR
  • 2. Outline
    • History and Product offerings
    • Tata Group & Corporate Responsibility
    • Financial Analysis
    • Tata’s Future & what impact, if any, for the American auto market
  • 3. History
    • Started in 1945 in Mumbai, India.
    • Original production was on locomotives.
    • 1954
      • First car rolled off of the assembly line.
    • Tata’s are a family of Indian industrialists and philanthropists.
    • The family founded:
      • Ironworks
      • Steelworks
      • cotton mills
      • hydroelectric-power plants
    • Are of their endeavors have been proved to be crucial to India's industrial development.
  • 4. History
    • Tata Motors is India’s owns the largest independent company in India.
    • Mercedes and Tata teamed up to create a truck line.
      • First major business deal with another firm.
    • Together both companies started their commercial vehicle operations in 1960.
    • in 1986 the company created and sold the first LCV
      • LCV = light commercial vehicle
      • Was the Tata 407
  • 5. History
    • Tata Motors decided to pursue joint ventures.
      • Cummins Engine Co., Inc., was the first company to jointly venture with Tata in 1993.
      • Manufactured a diesel engine that had high horsepower and emitted less harmful chemicals.
    • Began creating new lines in the late 1990’s and early 2000’s:
      • Compressed natural gas buses
      • 1109 vehicle, used for commercial purposes.
      • Ex-series
      • Newly designed LCV called the 207 DI
  • 6. Products
    • Tata Indigo
      • Created in 2002
      • Mid-sized sedan.
      • Different models run on either normal gasoline or diesel fuel.
      • Seats 5 people.
      • Same luxuries as American made vehicles.
  • 7. Products
    • Tata Indigo SW
      • Station wagon version of the Indigo.
      • Same basic features as the Indigo.
      • Seats 5 people.
      • Different models fun on different fuels.
      • Different optional safety features than other vehicles.
  • 8. Products
    • Tata Indica
      • Hatchback version of the Indigo sedan.
      • Easily affordable.
      • Smallest in the line of Tata vehicles to date.
      • Seats 5 people.
      • Same basic features as the sedan.
  • 9. Products
    • Tata Safari
      • Mid-sized SUV.
      • Has a special engine called DICOR.
        • Direct Injection Common Rail.
        • Allows the engine to intercool itself.
      • Comes in either a 4x4 or a 4x2.
      • Can seat 7 passangers.
  • 10. Products
    • Tata Sumo
      • Runs off of diesel fuel.
      • Seats up to 7 passengers.
      • Has a separate rear and front suspension for an optimal ride.
      • Has two separate air conditioners for the front and rear of the vehicle.
  • 11. Tata Group
    • 100 companies throughout 7 business sectors
      • Engineering, materials, energy, chemicals, services, consumer products, information systems and communications
        • Tata AutoComp Systems - Automotive
        • Tata Steel - Materials
        • Tata Power - Energy
        • Rallis India - Chemicals
        • Tata Realty and Infrastructure - Service
        • Tata Tea - Consumer Products
        • Tata Technologies - Information Systems and Communications
  • 12. Corporate Social Responsibility
    • “ A Company that cares about the future”
      • Committed to corporate social responsibility
      • Signed the United Nations Global Compact
    • Plays role in community development
    • Environmentally-friendly products and technology
  • 13. Corporate Social Responsibility
    • Two main concerns:
      • Reduction of pollution
      • Restoration of ecological balance
        • Implemented soil and water conservation programs
    • Cleaner Engines
      • Advanced emission-testing labs
      • Developing alternate fuel engines
    • Sewage treatment facilities
    • Encourages tree planting
  • 14. Corporate Social Responsibility
    • India – Recycling Culture
      • Value in discarded products
    • Europe – “Throw-away” culture
    • European ELV Directive
  • 15. Corporate Social Responsibility
    • Community Development
      • Community Service Division
        • Promote economic independence
          • “ Self-initiated cottage industries”
  • 16. Tata Finance: overview
    • Stock Trend
    • Growth and Expansion
      • Sales
      • assets
    • Financing Operations
    • Tata vs. American Companies
  • 17. Tata Motors Inc. Stock
    • TTM
    • NYSE since 2004
    • $15.84 as of Friday (Yahoo, 2008)
    • Down 8% in last year
  • 18. Since 2004: TTM
  • 19. Growth and Expansion
    • large Indian market
      • Familiar with market
      • Brand loyalty
    • Fuel efficiency
    • Mahindra & Mahindra- $1.88 billion
  • 20. Debt vs. Equity
    • Debt growth: $2.3 billion  $4.1 billion
    • Equity growth: $1.2 billion  $2.1 billion
      • 55 million outstanding shares
      • ROE : 19%
    • Debt/ equity ratio: .87
      • Industry average: .58
      • Cash now for growth
  • 21. Growth
    • Asset growth  doubled since 2005
      • Acquisition of Jaguar and Land Rover from Ford
    • Sales:
      • $7.6 billion and grew 42.2% from 2006
    • PROFITS!!
      • $.95 billion on 2005  $1.5 billion on 2007
  • 22. Cash Management
    • Liquidity and solvency are good
    • Inventory
    • Improved cash management:
      • 12% of assets in 2005
      • 4% of assets in 2007
  • 23. Comparatively Speaking Brand: Tata Ford GM Sales: $7.6 billion $172 billion $181 billion # of employees 33,900 246,000 266,000 Profit Margin 20% 17% 6.7%
  • 24. Effects on U.S. Economy
    • Slow economy
      • High oil prices
      • Demand for fuel efficiency
      • Cut backs
    • Tata’s effect
  • 25. Jaguar and Ford
    • Purchase from Ford
      • Concerns
    • Changes or Plans
      • More Tata vehicles
      • Made in India
        • Future
  • 26. U.S. Car Companies
    • $ 2 Billion in sales
    • GM-$50; Ford-$40; Honda- $20
    • In the U.S.
    • Going overseas
      • 75% by 2017 for GM
    • Expanding in India
  • 27. U.S. Car Companies
    • Toyota- 7.5% increase in profits
    • Foreign Markets
      • No help
      • 1. Can’t offset
      • 2. India out of reach
  • 28. The Next Auto Capital
    • Detroit current auto capital
    • 21 st century belongs to India
    • 2050 in India and China
      • Labor
      • Environment
  • 29. Future of the Nano
    • Not for the U.S.
      • 3 rd world countries
      • U.S. standards
    • Detroit make or buy version
  • 30. Summary
    • Tata history and products
    • Tata Group
    • Tata: Social Responsibility
    • Tata Motors Finance
    • Future
  • 31. Questions