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MD & A
77
CORPORATE OVERVIEW (1-31)
STATUTORY REPORTS
FINANCIALS (123-204)
markets. The remaining importer markets are managed from
the UK. The Vehicles products are also sold to fleet customers,
including daily rental car companies, commercial fleet
customers, leasing companies, and governments giving a
benefit of a diversified customer base which reduces its
dependence on any single customer or group of customers.
Jaguar Land Rover’s Competition:
JLR operates in a globally
competitive environment and faces competition from
established premium and other vehicle manufacturers who
aspire to move into the premium performance car and
premium SUV markets. Jaguar vehicles compete primarily
with other European brands such as Audi, BMW and Mercedes
Benz. Land Rover and Range Rover vehicles compete mainly
with SUVs manufactured by Audi , BMW, Infiniti , Lexus,
Mercedes Benz, Porsche and Volkswagen. The Land Rover
Defender competes with vehicles manufactured by Isuzu,
Nissan and Toyota.
Tata Daewoo Commercial Vehicles (TDCV):
FY 2011-12 was
a very challenging year for TDCV due to the slowdown of the
Korean economy. Overall sales increased primarily due to
significantly higher sales of Medium Commercial Vehicles
(MCV ) in the domestic market. The total market for Heavy
Commercial Vehicles (HCV) in Korea declined in FY 2011-12
mainly due to slowdown in the economy. TDCV sold 2,549
units of HCV in FY 2011-12 compared to 2,848 units in FY
2010-11. TDCV believes to have improved its market share
marginally post stabilization and full year operation of its sales
and distribution company.
However, the demand for Medium Duty Trucks increased
significantly during the year due to growing demand of Special
Purpose Vehicle (mainly Refrigerated Van) and Military Vehicles
and the shift in demand from relatively high priced HCVs
(4X2 Cargo & 6X4 Cargo) to MCVs (4.5 Ton and 5 Ton). In this
segment, TDCV sold 4,003 units in FY 2011-12 compared to
2,895 units in FY 2010-11.
TDCV exported 2,979 units during the year as compared to
3,005 units in previous year, in TDCV traditional market like
Algeria the HCV continues to experience a slump which
resulted in a marginal decline in exports. Majority of exports
were made to countries like Algeria, Russia, Vietnam, South
Africa and countries in the Middle East. TDCV continues to
diversify its markets.
Tata Motors Finance Ltd (TMFL):
The total disbursements
during the year by TMFL were higher by 33% at
`
10,505 crores
against
`
7,908 crores of FY 2010-11. TMFL financed 2,30,588
vehicles during the year as compared to 1,60,781 vehicles in
FY 2010-11, a growth of 43%. The disbursals for Commercial
Vehicles were
`
7,204 crores (1,20,032 units) compared to
`
6,041 crores (94,446 units) in FY 2010-11. The vehicle financing
for Passenger vehicles grew signi f icantly with the
disbursements on the Nano and other passenger vehicles. The
disbursals for Passenger vehicles for the year were at
`
3,301
crores (1,10,556 units) compared to
`
1,867 crores (66,335 units)
in FY 2010-11.
In an environment of sluggish growth in the economy and
rising interest costs, TMFL performance was mainly attributable
to increased customer orientation. TMFL’s key initiative of
improving customer relations by effectively growing its ‘Office
of the Customer’ and the deployment of its ‘Risk Scored Pricing
Model’, contributed to performance. TMFL enhanced and
significantly improved its branch network and infrastructure,
and is confident that these investments will significantly
improve relations with customers and dealers.
TataTechnologies (TTL):
TTL, a key strategic partner in several
of the information technology initiatives for the Tata Motors
Group, recorded a growth of 32.4% in revenue from sale of
products and services, from
`
493 crores in FY 2010-11 to
`
644
crores in FY 2011-12. During this period, revenue from services
increased by 33.1% and product sales increased by 15.3% over
last year, to reach figures of
`
563 crores and
`
81 crores,
respectively. The services revenue comprises Engineering
Automation Group [EAG], Enterprise Solutions Group [ESG]
and Product Lifecycle Management [PLM]. EAG addresses the
engineering and design needs of manufacturers through
services for all stages of the product development and
manufacturing process. ESG addresses the Information
Technology needs of manufacturers including business
solutions, strategic consulting, ERP implementation, systems
integration, IT networking and infrastructure solutions and
program management . PLM addresses the product
development technology solution requirements of
manufacturers including end-to-end implementation of PLM
technology, best practices and PLM consulting. PLM also
includes the TTL’s proprietar y applications iGETIT® and
FINANCIAL HIGHLIGHTS (32-45)