Statutory Reports
Corporate Overview
69th Annual Report 2013-14
70
Financial Statements
Growth in China was at 7.5% and Africa, encouragingly, grew by more than 5%.
Tata Motors Business:
Consequent to the macro economic factors as explained above, the Indian automobile industry posted a decline of 9.3% in FY 2013-14, as
compared to 1.1% growth in the last fiscal. The commercial vehicles declined by 22.4% (last year growth of 1.7%) and passenger vehicles
declined by 4.7% (last year growth of 0.9%).
The industry performance in the domestic market during FY 2013-14 and the Company’s market share are given below:-
Category
Industry Sales
Company Sales
Market Share
FY 2013-14 FY 2012-13 Growth FY 2013-14 FY 2012-13 Growth FY 2013-14
FY 2012-13
Units
Units
Units
Units
Commercial vehicles
698,907
900,433
-22.4%
377,909
536,232
-29.5%
54.1%
59.6%
Passenger vehicles
2,438,502
2,557,566
-4.7%
141,846
229,325
-38.1%
5.8%
9.0%
Total
3,137,409
3,457,999
-9.3% 519,755
765,557
-32.1% 16.6% 22.1%
Source: Society of Indian Automobile Manufacturers report and Company Analysis
Commercial vehicles include V2 Van sales.
Passenger vehicles include Fiat and Jaguar Land Rover branded cars
INDUSTRY STRUCTURE AND DEVELOPMENTS
Commercial Vehicles:
The demand for Commercial vehicles remained depressed throughout the year. For FY 2013-14 the Commercial vehicle industry volumes
at 698,907 reflect a decline of 22.4% over FY 2012-13. The Medium and Heavy Commercial Vehicles (M&HCV) segment recorded a further
negative of 25.2% on the back of 23.3% decline in the last fiscal. The ban on mining, fleet underutilization, fall in resale value and low
economic activities contributed to the fall. However, over the last few months, the decline has slowed down and volumes have stabilized
through efforts taken by the Government to revive the sector by 4% reduction in excise duty, partial lifting of mining bans and increase in
freight rates, indicating that the economy may be nearing the end of the down-cycle. While the M&HCV segment had declined in the last
fiscal, the contraction of the Light Commercial Vehicles (LCV) segment by 21.2% is more significant because it was the growth driver in the
past, growing by 17.9% in the last fiscal. The fall in this segment has been led by the drop in the Small Commercial Vehicle (SCV) volumes
where fund availability is the most critical element. The high default rates in loans coupled with early delinquencies prompted the financiers
to tighten lending norms, reduce the Loan-to-value (LTV) ratio and go into a collection mode impacting the SCV segment quite sharply.
The Company registered a decline of 29.5% to 377,909 units, primarily due to fall in LCV volumes coupled with the falling demand in M&HCV.
The domestic industry performance during FY 2013-14 and the Company’s market share are given below:-
Category
Industry Sales
Company Sales
Market Share
FY 2013-14 FY 2012-13
Growth FY 2013-14 FY 2012-13
Growth FY 2013-14
FY 2012-13
Units
Units
Units
Units
M&HCV
200,424
267,983
-25.2%
109,984
142,764
-23.0%
54.9%
53.3%
LCV
498,483
632,450
-21.2%
267,925
393,468
-31.9%
53.7%
62.2%
Total
698,907
900,433
-22.4%
377,909
536,232
-29.5%
54.1% 59.6%
Source: Society of Indian Automobile Manufacturers report and Company Analysis
LCVs include V2 Van sales
