55
Notice
Directors’Report
(53-68)
Management Discussion & Analysis
Corporate Governance
Secretarial Audit Report
compared to FY 2012-13. In FY 2013-14, JLR incurred one off costs
for redemption of the higher coupon GB£500 million and US$410
million 2018 Notes (at 8.125% and 7.75% coupon respectively). The
bond redemption was pre-financed by the successful issuances
of US$700 million 4.125% 2018 Notes and GB£400 million 5% 2022
Notes, to reduce the Company’s overall cost of debt in line with the
improving credit. (Jaguar Land Rover’s figures are as per IFRS)
Tata Motors Finance Limited
, the Company’s captive financing
subsidiary, registered total revenues of
`
3,026 crores higher by 7%
of FY 2012-13 revenues and reported a Profit After Tax of
`
101 crores
in FY 2013-14 (FY 2012-13:
`
309 crores). The results for the year were
impacted due to tightness in the financial market, stress in the business
environment and the consequent higher provision on account of
Non-Performing Assets.
Tata Daewoo Commercial Vehicle Company Limited
, South
Korea registered revenues of KRW 884.1 billion (
`
4,906 crores),
a growth of 7.3% over the previous year. The positive impact of
higher volume, various cost control initiatives and price increase
in export market allowed company to achieve profit after tax of
KRW 23.5 billion (
`
130.4 crores) [FY 2012-13: loss of KRW 9.2 billion
(
`
45 crores)] (TDCV Figures are as per Korean GAAP).
VEHICLE SALES AND MARKET SHARES
The Tata Motors Group sales for the year stood at 10,20,546 vehicles,
lower by 14.4% as compared to FY 2012-13. Global sales of all
Commercial Vehicles were 432,600 vehicles, while sales of Passenger
Vehicles were at 587,946 vehicles.
TATA MOTORS
Tata Motors
recorded sales of 569,677 vehicles, a decline of 30.2%
over FY 2012-13. Industry decline during the year was at 9.3%, resulting
in the Company’s market share decreasing to 16.6% in the Indian
automotive industry from 22.1% in the previous year. The Company
exported 49,922 vehicles, lower by 2.0%, as compared to FY 2012-13.
Commercial Vehicles
Within the domestic market, the Company sold 3,77,909 Commercial
Vehicles (CV) , a decline of 29.5% from FY 2012-13. This represented
a market leadership share of 54.1% in the domestic CV market which
was mainly supported by consolidation in M&HCV segment.
Some of the highlights for the year were:
While the overall industry of M&HCV sales declined, the
Company was able to improve market share by 1.6% to stand
at 54.9%. A series of products were launched in this segment
to augment the portfolio of product offerings and increase
market share. These included the
Prima LX series of trucks
–
a perfect combination of economy and technology – 2523T,
3123T, 4028S (Single reduction and Hub reduction) and 4928S
(Single reduction and Hub reduction), 4923.S LX, Prima 4938
Tractor, 3138K Tipper, LPT 3723 - India’s first 5 axle truck and LPK
3118, and
Prima LX series of Tippers
– 2523K, 3123K, 2528K
and 3128K.
Other activities to stimulate market sentiments included the
pioneering
T1 Prima Truck Racing Championship
event
as well as the successful value added services, power of five
campaign for trucks focusing on – 1) Better KMPL, 2) Best
Vehicle Uptime, 3) Highest Resale Value, 4) Best in class four year
warranty, and 5) Lowest maintenance cost and five powerful
offerings – a) Triple benefit insurance, b) Increased Oil change
interval, c) four Year AMC, d) Tata Alert, and e) Fleetman.
The bus segment also witnessed reversal in market share
through intensive sales efforts coupled with launch of buses
with mechanical Fuel Injection Pump (FIP), introduction of
Starbus Ultra
in Stage carriage, marketing initiatives such as
‘Humare Bus Ki Baat Hain’
and
‘Dream it to win it’
program.
The warranty for M&HCV buses and trucks were increased
to three years and four years respectively, symbolizing
improvement in quality. The ‘Tata Alert’ service, to return a
vehicle back on road within 48 hours, has been expanded
across all national highways.
The
LCV segment
, which registered good growth last year,
did not continue its run this year. More specifically a decline
in SCV segment due to vehicle financing constraints was a
major problem. Fund availability is the most critical element
for SCV segment. The high default rates in CV loans coupled
with early delinquencies have instigated financiers to tighten
lending norms, reduce the (LTV) ratio with focus on collections
impacted the SCV Cargo and SCV Passenger segments quite
sharply. Some of launches this year included the
Ace and
Magic DICOR
and facelifts.
