Tata Motors and the Automotive Industry

Description
History and Product offerings

Tata Motors and the
Automotive Industry
The Smart People
Emily Frey, Eric Harmon,
Arielle Hord, Caitlin Kantosky
Outline

History and Product oferins

Tata !rou" # Cor"orate
$es"onsi%ility

Financial Analysis

Tata&s Future # 'hat im"act, i( any,
(or the American auto market
History

)tarted in *+,- in
Mum%ai, India.

Oriinal "roduction
'as on locomotives.

*+-,

First car rolled of o(
the assem%ly line.

Tata&s are a (amily
o( Indian
industrialists and
"hilanthro"ists.

The (amily (ounded/

Iron'orks

)teel'orks

cotton mills

hydroelectric0"o'er
"lants

Are o( their
endeavors have
%een "roved to %e
crucial to India1s
industrial
develo"ment.
History

Tata Motors is
India&s o'ns the
larest inde"endent
com"any in India.

Mercedes and Tata
teamed u" to
create a truck line.

First ma2or %usiness
deal 'ith another
3rm.

Toether %oth
com"anies started
their commercial
vehicle o"erations in
*+45.

in *+64 the com"any
created and sold the
3rst 7C8

7C8 9 liht
commercial vehicle

:as the Tata ,5;
History

Tata Motors decided to
"ursue 2oint ventures.
– Cummins Enine Co.,
Inc., 'as the 3rst
com"any to 2ointly
venture 'ith Tata in
*++55,

H*-.6, as o( Friday IGahoo, >556J

Ao'n 6K in last year
)ince >55,/ TTM
!ro'th and E?"ansion

lare Indian market

Familiar 'ith market

=rand loyalty

Fuel eLciency

Mahindra # Mahindra0 H*.66 %illion
Ae%t vs. EMuity

Ae%t ro'th/ H>.< %illion ? H,.* %illion

EMuity ro'th/ H*.> %illion ? H>.*
%illion

-- million outstandin shares

$OE / *+K

Ae%tN eMuity ratio/ .6;

Industry averae/ .-6

Cash no' (or ro'th
!ro'th

Asset ro'th ? dou%led since >55-

AcMuisition o( Oauar and 7and $over
(rom Ford

)ales/

H;.4 %illion and re' ,>.>K (rom >554

P$OFIT)PP

H.+- %illion on >55- ? H*.- %illion on
>55;
Cash Manaement

7iMuidity and solvency are ood

Inventory

Im"roved cash manaement/

*>K o( assets in >55-

,K o( assets in >55;
Com"aratively )"eakin
Brand: Tata Ford GM
)ales/ H;.4 %illion H*;> %illion H*6* %illion
Q o( em"loyees 44,555
Pro3t Marin >5K *;K 4.;K
Efects on C.). Economy
R
)lo' economy
F
Hih oil "rices
F
Aemand (or (uel eLciency
F
Cut %acks
R
Tata&s efect
Oauar and Ford

Purchase (rom Ford

Concerns

Chanes or Plans

More Tata vehicles

Made in India

Future
C.). Car Com"anies

H > =illion in sales

!M0H-5S Ford0H,5S Honda0 H>5

In the C.).

!oin overseas

;-K %y >5*; (or !M

E?"andin in India
C.). Car Com"anies

Toyota0 ;.-K increase in "ro3ts

Forein Markets

@o hel"

*. Can&t ofset

>. India out o( reach
The @e?t Auto Ca"ital

Aetroit current auto ca"ital

>*
st
century %elons to India

>5-5 in India and China

7a%or

Environment
Future o( the @ano

@ot (or the C.).

<
rd
'orld countries

C.). standards

Aetroit make or %uy version
)ummary

Tata history and "roducts

Tata !rou"

Tata/ )ocial $es"onsi%ility

Tata Motors Finance

Future
Tuestions

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