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Mercedes- Benz, themarket leader, was overtaken by BMWand then further
relegated to the number three position by Audi. More fuel-efficient cars,
hybrids andelectric vehicles continue tobeof interest, but amajor attraction
appears to have been city cars which are small and highly fuel-efficient or
are electrically driven.
By contrast, Asia has continued to register growth, mainly from domestic
and overseas sales growth in China and India. China has emerged as the
largest car market and car producing center of the world. Chinese brands
have started to appear in world markets and in all probability these will
grow into international brands in the next few years.
The year saw increased sales of passenger cars and commercial vehicles in
India
over the previous year, the main growth being at the low end, with
an emphasis on new, fuel-efficient cars and a shift of preference to diesel.
The domestic consumer showed considerable interest in small SUVs and in
all luxury brands.
The year has been a mixed bag for
Tata Motors
. The Company retained its
market leadership in commercial vehicles and gained further market
strength through the highly successful Ace and Magic – its new line of light
pick-up trucks. On the other hand, passenger car sales were below
expectations, even though sales of the Nano increased over the previous
year.
In the coming years, Tata Motors’ predominance in commercial vehicles will
be challenged by the entry of international brands like Mercedes-Benz,
Volvo and Navistar which have all entered, or are in the process of entering
India. A new line of very competitive, fuel-efficient vehicles is being
developed by Tata Motors to meet the competition head-on. In passenger
cars, Tata Motors will face even greater competition from the many
automotive brands that are in the country. The Company will need to
address the marketplace more effectively with its existing and future
CORPORATE OVERVIEW
STATUTORY REPORTS (46 – 122)
FINANCIALS (123 – 204)
FINANCIAL HIGHLIGHTS (32 – 45)
9
Chairman’s Statement