Presentation slides
- 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