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MD & A
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CORPORATE OVERVIEW (1-31)
STATUTORY REPORTS
FINANCIALS (123-204)
increase reach and penetration, by appointing Nano exclusive
dealers, the Company is targeting rural customers to drive
growth. During FY 2011-12, the Company launched Nano 2012,
with several new features, including improved fuel efficiency.
The Company also started exporting Nano to neighbouring
countries such as Nepal and Sri Lanka.
The Mid-size and Utility Vehicles category, recorded 17.6%
and 16.8% growth on the back of demand for diesel cars and
new product / variants. The Company’s sales in the mid size
category suffered as competition severely intensi f ied
with multiple new launches from other industry players in
this segment.
The Company recorded a healthy growth of 16.8% in Utility
Vehicle segment, at par with industry growth during the year,
with sales increasing to 49,035 units. Increase in sales of the
Sumo post the launch of the BS4 variant of the Sumo Gold
combined with increase in the sales of the Safari, contributed
to this growth. The new Safari Storme was displayed at the
New Delhi Auto Expo in January 2012 to be launched in the
FY 2012-13.
The Company sold 17,129 Fiat cars in FY 2011-12, with a sale
of 4,796 Linea and 12,297 Grande Punto. Fiat stood at the
tenth position among the major car players in the country. The
Tata-Fiat dealer network was upgraded to 170 dealer facilities
across 129 cities as of March 31, 2012. Fiat was ranked ninth in
the JD Power 2011 India Customer Service Index Survey.
During the year, the Company launched the Fiat Linea 2012
and the Fiat Grande Punto. In May 2012, JV partners decided
that in order to further develop the Fiat brand in India,
management control of Fiat’s commercial and distribution
activities will be handed over to a separate Fiat Group owned
company in India.
The Company sold 2,274 Jaguar Land Rover (JLR) vehicles
through its exclusive outlets in India registering an impressive
growth of 91%. The Company launched the globally popular
Range Rover Evoque. During the year, the Company expanded
its dealership network to 13 outlets covering 11 cities. The
Company commenced the local assembly of the Land Rover
Freelander 2, at Pune in May 2011, which has been received
extremely well in India.
TataMotors Sales andDistribution:
The sales anddistribution
network in India as of March 31, 2012, comprises approximately
2,150 sales contact points for the Passenger and Commercial
Vehicle businesses. The Company formed a 100% subsidiary,
TML Distribution Company Ltd (TDCL) in March 2008, to act as
a dedicated distribution and logistics management
company to support the sales and distribution operations
of vehicles in India. The Company believes that this has
improved the efficiency of our selling and distribution
operations and processes.
TDCL provides distribution and logistics support for vehicles
manufactured at our facilities. TDCL helps us improve planning,
inventory management, transport management and timely
delivery. The Company has deployed a Customer Relations
Management (CRM) system at all our dealerships and offices
across the country. The system is certified by Oracle as the
largest Siebel deployment in the automotive market. The
combined online CRM system supports users both within the
Company and among the distributors in India and abroad.
The Company provides financing support through the wholly-
owned subsidiary, Tata Motors Finance Ltd (TMFL), to end
customers and independent dealers, who act as the Company’s
agents. During FY 2011-12, approximately 27% of vehicle unit
sales in India were made by the dealers through financing
arrangements provided by TMFL as compared to 21% in FY
2010-11. The total vehicle finance receivables (consolidated)
outstanding as at March 31, 2012 and 2011 amounted to
`
15,747.67 crores and
`
10,095.62 crores, respectively.
The Company uses a network of service centers on highways
and a toll-free customer assistance center to provide 24-hour
on-road maintenance (including replacement of parts) to
vehicle owners. The Company believes that the reach of the
sales, service and maintenance network, provides us with a
significant advantage over the competitors.
Tata Motors Competition:
The Company faces competition
from various domestic and foreign automotive manufacturers
in the Indian automotive market. Improving infrastructure and
robust growth prospects compared to other mature markets,
are now attracting a number of automotive OEM’s to India.
These companies have either formed joint-ventures with local
FINANCIAL HIGHLIGHTS (32-45)