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Tata Motors Limited
टाटा मोटर्स
Company typePublic (NYSE: TTM)
ISININE155A01022 Edit this on Wikidata
Founded1945
FounderJRD Tata
HeadquartersIndia Mumbai, India
Key people
India Ratan Tata, Chairman
ProductsAutomobiles and Engines
RevenueIncrease USD $9.07 billion (2006)
Increase USD $474.0 million (2006)
ParentTata Group
SubsidiariesJaguar Cars
Land Rover
Tata Daewoo
Websitewww.tatamotors.com

Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive Company), is a multinational corporation headquartered in Mumbai, India. It is India's largest passenger automobile and commercial vehicle manufacturing company. Part of the Tata Group, and one of the world's largest manufacturers of commercial vehicles. The OICA ranked it as the world's 20th largest automaker, based on figures for 2006.[1]

Tata Motors was established in 1945, when the company began manufacturing locomotives. The company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969[2]. Tata Motors was listed on the NYSE in 2004, and by 2005 it was ranked among the top 10 corporations in India with an annual revenue exceeding INR 320 billion. In 2004, it bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. It also, acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company. Tata Motors launched their much awaited Tata Nano, noted for its Rs 100,000 price-tag, in January 2008.

In March 2008, it finalised a deal with Ford Motor Company to acquire their British Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names.[3][4][5] The purchase was completed on 2nd June 2008[6]

Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow and Pune.

History

Tata Motors is a part of the Tata and Sons Group, founded by Jamshetji Tata and J. Baker. The company was established in 1945 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany.

Early years

File:Tatamilestone 1.jpg
Tata Motors launches its first truck in collaboration with Mercedes-Benz

Tata Motors started its commercial vehicle operations in 1960 with the manufacturing of first commercial vehicle (a copy of a Daimler Benz model) in Pune. It took five years for the company to begin the commercial production of heavy commercial vehicles. Considering the road infrastructure of the country which does not support heavy vehicles, the company adopted a route for light commercial vehicles (LCV). It came out with its first LCV, Tata 407, in 1986.

Post liberalization, in order to expand rapidly, the company adopted the route to joint ventures. In 1993, it signed with Cummins Engine Co., Inc., for the manufacture of high horsepower and emission friendly diesel engines. It was an effort made to reduce the pollution in the existing Tata engines and to produce more environmentally friendly engines. Furthering the trail of JVs it signed a joint venture agreement with Tata Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins engines.

Expansion

Tata Indica

Main article: Tata Indica
Tata Indica

After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle in 1998 by launching hatch-back car, the Tata Indica. Indica was the first car indigenously designed in India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite. A badge engineered version of the car was sold in the United Kingdom as the Rover CityRover. Tata Motors also successfully exported large quantities of the car to South Africa. The success of Indica in many ways marked the rise of Tata Motors.[7][8]

Daewoo acquisition

Main article: Tata Daewoo Commercial Vehicle
File:Tata novus ra06.JPG
Tata Novus is one of the best selling commercial trucks in South Korea.

With the success of Tata Indica, Tata Motors aimed to increase its presence world-wide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the acquisition were:

  • Company’s global plans to reduce domestic exposure. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments.
  • To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project

On its journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus).

Joint ventures

Tata MarcoPolo NON-AC City Bus in Delhi.The NON-AC version is only used in Delhi while AC versions are used in Bangalore, Mumbai and Delhi alike

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA [9], Aragonese bus manufacturing company and introduced its high-end inter-city buses in the country.

Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global leader in bus body building. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design.

Tata Ace

Main article: Tata Ace

Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by Autoline Industries. [10] By 2005, Autoline was producing 300 load bodies per day for Tata Motors. Ace is still one of the number maker for TML, TML sold the 2,00,000th Ace in August 2008, within 4 years since its introduction.[11]

Tata Ace has also been exported to several European, South American and African countries. Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division. [12]

2007

Tata Pick Up, unveiled in 2007, is expected to enter European and American market by 2009.

In 2007, Tata Motors launched several concept models and future designs of existing models. It also formed joint ventures with various local companies in several countries to assemble Tata cars. Tata Motors launched a re-designed version of Tata Xenon TL during Motor Show Bologna which would be assembled in Thailand and Argentina. A pick-up variant of Tata Sumo was also launched under the program 'Global Pick-Up'. The company plans to launch the new pick-up model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. Tata Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-car during the Geneva Auto Show.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine technology.[13] Tata Motors is looking to extend its relationship with Fiat and Iveco to other segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the entry of the company into developed markets like Europe and the United States. The project was initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync with the needs of sophisticated European customers. The company has formed a joint venture with Thailand’s Thonburi Company, an independent auto assembler, in which Tata Motors will hold a 70% stake.

2008 onwards

Compressed air car

Tata OneCAT
Main article: Tata OneCAT

Tata Motors and Motor Development International of Luxembourg have jointly developed the world's first commercially-viable prototype of a compressed air car, named OneCAT.[14]

It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. MDI plans to also design a gas station compressor, which would fill the tanks in 3 minutes. [15] There are no gasoline costs and no fossil fuel emissions from the vehicle. There are cost, pollutant emissions, and greenhouse gas emissions from the generation of the electricity used to compress the air. These emissions can be mitigated or eliminated, depending on the source of the electricity (e.g. coal fired power plant, nuclear, solar, etc.)[16].

OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. It is actually a dual fuel car but it is more efficient than any present Hybrid cars.

Tata Nano

Main article: Tata Nano
Tata Nano

Tata has developed a car, named Tata Nano, that aims to sell in 2008. It is the least expensive production car in the world: the price is about Rs. 100,000 (USD $2,500)[17]. The company unveiled the supermini car during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi. [18] Bajaj Auto and Mahindra-Renault have plans to launch cars in this price range.[19]

Tata has faced controversy over developing the Nano. Some environmentalists are concerned that the launch of such a low-price car could lead to mass motorization in India with adverse effects on pollution and global warming. There was also strong opposition to the compulsory acquisition of land for the proposed car factory in Singur West Bengal. Now Tata Motors Limited plan to set up the Nano factory in Sanand, Gujarat, because of the problems faced in West Bengal.

To solve this, Tata is going to produce the E-Nano, an electric version, in partnership with Miljøbil Grenland AS [20] .

Jaguar Cars and Land Rover

Main articles: Jaguar Cars and Land Rover

As of March 27, 2008, Tata Motors reached agreement with Ford to purchase their Jaguar and Land Rover operations for US$2 billion. The sale is expected to be completed by the end of the second quarter of 2008.[21] Tata will also gain the rights to the Daimler, Lanchester, and Rover brand names.[22]

In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in UK. The key acquisition would be of the intellectual property rights related to the technologies.

Electric vehicles

Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace. Both run on lithium batteries . The company has indicated that the electric Indica would be launched locally in India in about 2010, without disclosing the price. The vehicle would be launched in Norway in 2009. [23].

Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3% holding in electric vehicle technology firm Miljø Grenland[24]/Innovasjon of Norway for US$1.93 M, which specialises in the development of innovative solutions for electric vehicles, and plans to launch the electric Indica hatchback in Europe next year [25] [26][27].

Global operations

The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and American market.
File:20070315-194941.jpg
With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its intention to enter sedan and sports car market.
Tata Indica during an auto exhibition in Bangkok, Thailand. Indica and Xenon TL will be assembled in Thailand and Argentina.

Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe.

Global brands

Tata Motors has been aggressively acquiring foreign brands to increase its global presence. In 2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company.

On March 26, 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford Motor in a deal worth $2.3bn (£1.15bn).[21] Tata Motors has also acquired from Ford the rights to three other brand names: Daimler, Lanchester and Rover. it was rumoured in 2008 that Tata was in negotiations along with Fiat, General Motors and Renault-Nissan as a possible suitor for the rapidly declining Chrysler, which is currently owned by Cerberus_Capital_Management[28].

Present global challenge

Tata Motors have some distinct advantages in comparison to other multi-national competitors. There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of sales in developed economies. Tata motors have extensive backward and forward linkages and it is strongly interwoven with machine tools and metals sectors. Tata Group's strong expertise in the IT based engineering solution for products and process integration has helped Tata Motors. India has a large auto component industry noted for its world class capabilities. There is huge demand in domestic markets due to infrastructure developments and Tata Motors is able to leverage its knowledge of Indian market. There are favorable Government polices and regulations to boost the auto industry.

However, some major automakers have moved their operations to India to cut costs. Volvo entered India in 1998 to focus on production of its fully built buses. In India, it has focused on providing economical transport solutions in consonance with its values of safety, quality, and environmental care. Its competitive advantage is its high technology which makes the vehicle a very comfortable option to travel through. Tata's trucks have long been reputed for their unmatched performance, build, and technological advancements that are the flag bearers in their production activities in India. It is still operating in the niche market of high end buses where the Tata compete through its Hispano Carrocera and Marcopolo S.A. JV buses.

The Government of India announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed.

An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in near future, which might affect its growth negatively.

Future challenges

Tata Xover

Plastic Car Production- Tata plans on producing a car that is made of nearly 100% plastic.

  • Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M has formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar International), to manufacture commercial vehicles and to bolster its position in the CV business. ITEC is the leader in medium and heavy trucks and buses in North America, and is the world's largest manufacturer of medium-duty diesel engines. Mahindra International aims to have a presence across the CV market (6-35 tonnes GVW) with variants of passenger transport, cargo and specialised load applications and is likely to start producing medium/heavy commercial vehicles from FY09.
  • Force Motors: JV with MAN for manufacturing high-tonnage vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the 16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia, Asia and Africa. Further, the two companies have formed another JV to manufacture buses in India from end-2007.
  • Ashok Leyland: Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL) recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities. ALL has also entered into technology agreements with Hino Motors of Japan and ZF of Germany to complement its in-house R&D efforts and developing complementary components and aggregates.

Products

Passenger cars and utility vehicles

Tata Indigo SW

Concept vehicles

File:112 06geneva 01x tata cliffrider concept front driver side.jpg
Tata Cliffrider

Commercial vehicles

Tata 1616 Starbus
File:BusesDelhiDTC.jpg
Tata Marcopolo Buses in the Delhi BRT.
Tata StarBus in Nagpur, Maharashtra. Tata Low Floor Buses are also used by administrations in Delhi, Mumbai, Pune, Udaipur and Indore
  • Tata Ace
  • Tata TL/Telcoline/207 DI Pickup Truck
  • Tata 407 Ex and Ex2
  • Tata 709 Ex
  • Tata 809 Ex and Ex2
  • Tata 909 Ex and Ex2
  • Tata 1109 (Intermediate truck)
  • Tata 1510/1512 (Medium bus)
  • Tata 1610/1616 (Heavy bus)
  • Tata 1613/1615 (Medium truck)
  • Tata 2515/2516 (Medium truck)
  • Tata Starbus (Medium Bus)
  • Tata Globus (Low Floor Bus)
  • Tata Marcopolo Bus (Low Floor Bus)
  • Tata 3015 (Heavy truck)
  • Tata 3118 (Heavy truck) (8X2)
  • Tata 3516 (Heavy truck)
  • Tata 4923 (Ultra-Heavy truck) (6X4)
  • Tata Novus (Heavy truck designed by Tata Daewoo)

Military vehicles

  • Tata LSV (Light Specialist Vehicle)
  • Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions
  • Tata LPTA 713 TC (4x4)
  • Tata LPT 709 E
  • Tata SD 1015 TC (4x4)
  • Tata LPTA 1615 TC (4x4)
  • Tata LPTA 1621 TC (6x6)
  • Tata LPTA 1615 TC (4x2)

Alternative propulsion

Tata Motors aims at producing around 6,000 OneCAT air cars at €2,500 by 2008.[29]

Tata Motors subsidiaries

Telco Construction Equipment (TCE)

TCE is a joint venture between Tata Motors and Hitachi, which focuses on excavators and other construction equipment.

HV Transmission (HVTL) and HV Axles (HVAL)

HVAL and HVTL are 100% subsidiary companies of Tata Motors engaged in the business of manufacture of gear boxes and axles for heavy and medium commercial vehicles, with production facilities and infrastructure based at Jamshedpur. The combined revenue of the two companies rose 38.7% yoy for 9MFY07 while the combined PAT rose 50.9%. Tata Motors plans a capex of Rs2bn each for HVAL & HVTL and plans to raise funds for the same, most probably by way of a strategic sale to a technical collaborator. The strategic sale of either HVAL or HVTL or both is likely to be completed in the next one or two quarters.

Tata Technologies Limited (TTL)

TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata Motors holds 86.91% of TTL’s share capital. TTL is based in Pune (Hinjawadi) and operates in the US and Europe through its wholly owned subsidiaries in Detroit and London respectively. It also has a presence in Thailand. Tata Technologies is a software service provider in the IT services and BPO space. Its global client list includes Ford, General Motors, Toyota and Honda, to name a few. It bought over the British engineering and design services company, Incat International Plc for Rs4b in August 2005. Incat specializes in engineering & design services and product lifecycle management in the international automotive, aerospace and engineering markets. With this acquisition, Tata Motors will have closer proximity to its global customers and be able to provide a wider range of services.

Tata Daewoo CV (TDCV)

TDCV is a 100% subsidiary of the Tata Motors based in South Korea, which was acquired in March 2004. TDCV is in the business of manufacture and sale of heavy commercial vehicles.Tata Daewoo is Tata Motors’ 100% subsidiary in Korea, with a market share of 30%.Tata Motors will use the Daewoo technology to introduce higher tonnage trucks in the Indian market and use Tata Daewoo for exports globally. In line with this strategy, it has already introduced the Novus, a high-end tipper developed by Tata Daewoo for the Indian market.

See also

References

  1. ^ "World motor vehicle production by manufacturer: World ranking 2006" (PDF). OICA. 2007. {{cite web}}: Unknown parameter |month= ignored (help)
  2. ^ http://www.tata.com/tata_motors/articles/20051011_driving.htm
  3. ^ "FORD MOTOR COMPANY ANNOUNCES AGREEMENT TO SELL JAGUAR LAND ROVER TO TATA MOTORS" (Press release). Ford Motor Company. 2008-03-26. Retrieved 2008-03-27.
  4. ^ "Tata Motors enters into Definitive Agreement with Ford for purchase of Jaguar Land Rover" (Press release). Tata Motors. 2008-03-26. Retrieved 2008-03-27.
  5. ^ Tony Lewin (2008-03-27). "Classic names are part of Tata deal". Crain Communications work=Automotive News. Retrieved 2008-05-18. {{cite news}}: Check date values in: |date= (help); Missing pipe in: |publisher= (help)
  6. ^ "Tata Motors completes acquisition of Jag, Land Rover". Thomson Reuters. 2008-06-02. Retrieved 2008-06-02. {{cite news}}: Check date values in: |date= (help)
  7. ^ "Tata Indica: Rising Like the Phoenix". server1.msn.co.in. Retrieved 2008-03-29.
  8. ^ "Rebuilding success stories". tata.com. Retrieved 2008-03-29.
  9. ^ H I S P A N O
  10. ^ Autoline Website, http://www.autolineind.com/our_story.htm
  11. ^ Autoline
  12. ^ Error - LexisNexis® Publisher
  13. ^ "Fiat, Tata Motors set up joint venture". timesofmalta.com. 21st October 2007. Retrieved 2008-04-01. {{cite web}}: Check date values in: |year= (help)CS1 maint: year (link)
  14. ^ "French Compressed Air Car Set for Take-Off in India". planetark.org. Retrieved 2008-01-21.
  15. ^ Harrabin, Roger (13 February 2008). "Five-seat concept car runs on air" (web). An engineer has promised that within a year he will start selling a car that runs on compressed air, producing no emissions at all in town. BBC News. Retrieved 2008-02-16.
  16. ^ Future Energy Challenges and Energy Alternatives
  17. ^ "The Next People's Car". forbes.com. Retrieved 2008-01-21.
  18. ^ "Time to say hi to Tata's dream car". The Times of India.
  19. ^ "Bajaj Auto car by 2009". dancewithshadows.com. Retrieved 2008-01-21.
  20. ^ http://www.miljobil.no
  21. ^ a b "Tata Motors enters into Definitive Agreement with Ford for purchase of Jaguar Land Rover". Tata Motors. 2008-03-26. Retrieved 2008-03-26. {{cite web}}: Check date values in: |date= (help)
  22. ^ "5 for 2 special: Tata acquires 3 other British marques in Jaguar, Land Rover deal". Leftlane News. 28 March 2008. Retrieved 2008-03-28.
  23. ^ http://www6.lexisnexis.com/publisher/EndUser?Action=UserDisplayFullDocument&orgId=101846&topicId=104970025&docId=l:846836097
  24. ^ http://www.miljobil.no
  25. ^ http://www.tata.com/media/releases/inside.aspx?artid=D8J398/KAjI=
  26. ^ http://www.tata.com/company/profile.aspx?sectid=MiEz+LbA1Yg=
  27. ^ http://www.just-auto.com/article.aspx?id=96329&lk=dm
  28. ^ In addition to Nissan/Renault, Chrysler has been talking with Tata and Fiat http://www.autoblog.com/2008/10/14/in-addition-to-nissan-renault-chrysler-has-been-talking-with-ta/ October 15 2008
  29. ^ "Tata Motors building an Air Car?". addict3d.org. Retrieved 2008-01-21.
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