Tata Motors is the automobile arm of the prestigious Tata Group.
The company designs manufactures, assembles, and sells passenger, utility, commercial vehicles, and defence equipment.
It also offers vehicle financing, car service, spare parts, and accessories.
Tata Motors has an established presence in the global luxury car market via its subsidiary Jaguar and Land Rover (JLR).
Tata Motors is a market leader in the commercial vehicle segment. It also has a leading market share in India's passenger electric vehicle (EV) segment.
Tata Motors | |
---|---|
Products | Cars |
Sports utility | |
Trucks and buses | |
Defence | |
Financing | |
Spare parts | |
Service | |
Brands | Indica |
Harrier | |
Tiago | |
Hexa | |
Tigor | |
Nexon EV | |
Altroz | |
Xenon | |
Yodha | |
Jaguar | |
Land Rover | |
Competitive Advantage | Geographical diversification of revenue |
Established market position in commercial vehicles | |
Market leadership in electric vehicles (EVs) | |
Strong legacy of Jaguar Land Rover |
Creating a strong management team is a vital component of running a successful business.
A firm is only as good as the individuals who manage it. Checking management quality entails doing a background check on persons in charge of the business.
Here are the key personnel of Tata Motors:
The Tata group is a large conglomerate and Tata Motors being one of its biggest companies has many subsidiaries and different brands in various domains.
As of 31 March 2023, Tata Motors’ operations included 90 consolidated subsidiaries, two joint operations, four joint ventures and 11 equity-accounted associates, including their subsidiaries, in which the company exercises significant influence.
The main operational hubs are the United Kingdom (UK), South Korea, Thailand, South Africa and Indonesia.
It also has centres of design excellence in Italy and the UK, and its vehicles are marketed in Africa, the Middle East, South and Southeast Asia, Australia and South America.
Tata Motors has a decent presence in India as well as global markets through sale of Jaguar and Land Rover brand passenger vehicles.
Over the years, it has done various mergers and entered into joint ventures in the global markets. Its acquisition of Jaguar and Land Rover have been the key ones that helps to drive the company's business.
Tata Motors also holds the record of first Indian automobile company to get its shares listed in New York stock exchange (NYSE).
In recent years, Tata Motors has been called out for posting poor numbers owing to the cyclical nature of its business. For instance, in 2017 and 2018, its performance was positively impacted by the fortunes of its UK luxury car business, Jaguar Land Rover.
However, in a few months, amidst Brexit uncertainty, the demand slumped in the UK and Europe. Even then, JLR had pinned its hopes on the luxury vehicle market in China. But the US-China trade war significantly hurt JLR's sales in 2018.
Skip forward to present and the company is a pioneer in the electric vehicle (EV) market in India. Its domestic EV brands have become a common sight on Indian roads such as Tata Punch, Nexon, Tiago and Tigor.
Given the immense popularity of its brands, Tata Motors plans to grow its EV business aggressively. It plans to drive up EV penetration to double digits by launching ten new EVs by 2026.
The company has also unveiled TATA.ev, its new brand identity for the EV market.
The company seems well-placed to capitalise on the growing consumer preference for electric vehicles in India, leading the market with a share of more than 80%.
The Tata Group, as you know it, is known in actively assisting in the improvement of the quality of life of the people in the communities, giving preference to local areas.
As a matter of fact, the company will spend at least 2% of the average net profit of its India Operations for the next three financial years.
The Tata group's commitment to innovation and growth is visible from its active investments in research and development, exploring cutting-edge fields like electric vehicles, AI and sustainability solutions.
This keeps them ahead of the curve and open new avenues for wealth creation for the group and its investors.
In 2023, the market capitalisation of the Tata Group's 28 listed entities soared to Rs 27 trillion as of 26 December 2023, as against Rs 21 trillion as of 30 December 2022. This implies a return of 28%.
Tata Motors’ promoters currently hold around 46% stake in the company, with no shares having been pledged.
To know more, check out the latest shareholding pattern of TATA MOTORS.
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Tata Motors is the dominant force in the Indian electric vehicle (EV) market. This dominance will likely continue for at least a few more years, perhaps longer.
And every potential car buyer in India is acutely aware of it.
As the world transitions from conventional vehicles to EVs, Tata Motors will make a name for itself globally, just as it has already done in India.
The company is taking a big step towards EV push and expanding its Sanand plant in Gujarat.
The Sanand plant is Tata Motors' largest manufacturing facility in India. It currently produces a wide range of vehicles which includes the Tiago, Nexon, and Altroz.
The expansion of the Sanand plant will see the addition of a new lithium-ion battery production facility, expected to be operational by as early as 2025.
The Tata Group's investment in lithium-ion batteries is part of its broader strategy to transition to electric vehicles. The company is also working on developing its own electric vehicle charging infrastructure.
Here are links to some very insightful Equitymaster articles on Tata Motors:
Happy Investing!
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