Tata Motors and the Automotive Industry
Outline <ul><li>History and Product offerings </li></ul><ul><li>Tata Group & Corporate Responsibility </li></ul><ul><li>Fi...
History <ul><li>Started in 1945 in Mumbai, India.  </li></ul><ul><li>Original production was on locomotives. </li></ul><ul...
History <ul><li>Tata Motors is India’s owns the largest independent company in India. </li></ul><ul><li>Mercedes and Tata ...
History <ul><li>Tata Motors decided to pursue joint ventures. </li></ul><ul><ul><li>Cummins Engine Co., Inc., was the firs...
Products <ul><li>Tata Indigo </li></ul><ul><ul><li>Created in 2002 </li></ul></ul><ul><ul><li>Mid-sized sedan. </li></ul><...
Products <ul><li>Tata Indigo SW </li></ul><ul><ul><li>Station wagon version of the Indigo. </li></ul></ul><ul><ul><li>Same...
Products <ul><li>Tata Indica </li></ul><ul><ul><li>Hatchback version of the Indigo sedan. </li></ul></ul><ul><ul><li>Easil...
Products <ul><li>Tata Safari </li></ul><ul><ul><li>Mid-sized SUV. </li></ul></ul><ul><ul><li>Has a special engine called D...
Products <ul><li>Tata Sumo </li></ul><ul><ul><li>Runs off of diesel fuel. </li></ul></ul><ul><ul><li>Seats up to 7 passeng...
Tata Group <ul><li>100 companies throughout 7 business sectors </li></ul><ul><ul><li>Engineering, materials, energy, chemi...
Corporate Social Responsibility <ul><li>“ A Company that cares about the future” </li></ul><ul><ul><li>Committed to corpor...
Corporate Social Responsibility <ul><li>Two main concerns: </li></ul><ul><ul><li>Reduction of pollution </li></ul></ul><ul...
Corporate Social Responsibility <ul><li>India – Recycling Culture </li></ul><ul><ul><li>Value in discarded products </li><...
Corporate Social Responsibility <ul><li>Community Development </li></ul><ul><ul><li>Community Service Division </li></ul><...
Tata Finance: overview <ul><li>Stock Trend </li></ul><ul><li>Growth and Expansion </li></ul><ul><ul><li>Sales </li></ul></...
Tata Motors Inc. Stock <ul><li>TTM </li></ul><ul><li>NYSE since 2004 </li></ul><ul><li>$15.84 as of Friday (Yahoo, 2008) <...
Since 2004: TTM
Growth and Expansion <ul><li>large Indian market </li></ul><ul><ul><li>Familiar with market </li></ul></ul><ul><ul><li>Bra...
Debt vs. Equity <ul><li>Debt growth: $2.3 billion    $4.1 billion </li></ul><ul><li>Equity growth: $1.2 billion    $2.1 ...
Growth <ul><li>Asset growth    doubled since 2005 </li></ul><ul><ul><li>Acquisition of Jaguar and Land Rover from Ford </...
Cash Management <ul><li>Liquidity and solvency are good </li></ul><ul><li>Inventory </li></ul><ul><li>Improved cash manage...
Comparatively Speaking Brand: Tata Ford GM Sales: $7.6 billion $172 billion $181 billion # of employees 33,900 246,000 266...
Effects on U.S. Economy <ul><li>Slow economy </li></ul><ul><ul><li>High oil prices </li></ul></ul><ul><ul><li>Demand for f...
Jaguar and Ford <ul><li>Purchase from Ford </li></ul><ul><ul><li>Concerns </li></ul></ul><ul><li>Changes or Plans </li></u...
U.S. Car Companies <ul><li>$ 2 Billion in sales </li></ul><ul><li>GM-$50; Ford-$40; Honda- $20 </li></ul><ul><li>In the U....
U.S. Car Companies <ul><li>Toyota- 7.5% increase in profits </li></ul><ul><li>Foreign Markets </li></ul><ul><ul><li>No hel...
The Next Auto Capital <ul><li>Detroit current auto capital </li></ul><ul><li>21 st  century belongs to India </li></ul><ul...
Future of the Nano <ul><li>Not for the U.S. </li></ul><ul><ul><li>3 rd  world countries </li></ul></ul><ul><ul><li>U.S. st...
Summary <ul><li>Tata history and products </li></ul><ul><li>Tata Group </li></ul><ul><li>Tata: Social Responsibility </li>...
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Tata Motors And The Automotive Industry

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Tata Motors And The Automotive Industry

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

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