75
Notice
Directors’ Report
(69-103)
Management Discussion & Analysis
Corporate Governance
Secretarial Audit Report
Although it is already the largest car market in the world, unlike the
UK or US, China’s car market remains immature, with low vehicle
ownership rates and huge growth potential. A rapidly expanding
middle class, fast rising incomes, and a strong preference for
premium vehicles mean considerable opportunities exist for JLR to
increase sales further.
Emerging markets:
In Brazil, rising interest rates and falling
consumer confidence left total new vehicle registrations down 4.5%
year-on-year. Despite this backdrop, JLR expanded its sales by 21.1%
to over 11,000 vehicles. Meanwhile, in India and Russia the total
vehicle markets also contracted (by 6.2% and 6.0% respectively),
but JLR grew its sales by 8.6% and 14.7%. Only in South Africa
did the economic situation overcome JLR sales momentum. The
25% depreciation in the Rand against Sterling forced JLR to raise
prices to prevent losses being made on several models. JLR sales
contracted by 9.9% on the previous year.
Asia Pacific:
Total JLR sales increased by 27.7% year-on-year to
22,795. Of the three NSCs in the region, South Korea experienced
the fastest expansion. On the back of a rebound in economic
growth following the slowdown in 2012, JLR sales jumped 51.8%.
In Japan, advanced purchases of vehicles to beat the increase in the
consumption tax in April 2014 more than offset the deterioration
in consumer sentiment. Total JLR sales increased by 33.2% against
growth in the total passenger car market of 9.0% in FY 2013-14.
Finally, in Australia, the unwinding of the mining boom and growing
slack in the economy were compounded by dwindling consumer
confidence and rising unemployment. Total new car sales growth
was a meager 1.3% after over 8% the year before. JLR sales were
buoyant though, and grew by 15.3%.
Jaguar Land Rover’s Sales & Distribution:
JLR markets products
in over 170 countries, through a global network of 18 national
sales companies (NSCs), 84 importers, 53 export partners and 2,518
franchise sales dealers, of which 784 are joint Jaguar and Land Rover
dealers. JLR has established robust business processes and systems
to ensure that its production plans meet anticipated retail sales
demand and to enable the active management of its inventory
of finished vehicles and dealer inventory throughout its network.
JLR has robust arrangements in place with: Black Horse (part of the
Lloyds Bank Group) in the UK, FGA Capital (a joint venture between
Fiat Auto and Credit Agricole) in Europe and Chase Auto Finance
in the USA for the provision of dealer and consumer Financial
Services products. Jaguar Land Rover has similar arrangements
with local Auto Financial Services providers in other key markets.
JLR’s financing partners offer its customers a full range of consumer
financing options
Tata Daewoo Commercial Vehicles (TDCV):
FY 2013-14 was a
very encouraging as well as challenging year for the TDCV. On one
hand Domestic volumes increased by 21.9% resulting in strong
performance of the TDCV as compared to its competitors coupled
with gradual recovery in the Korean economy. On the other hand
Export volumes (including KD) decreased by 14.6% as compared
to the previous year mainly due to adverse economic conditions
in global markets. TDCV’s total sales volume increased by 5% in FY
2013-14 compared to FY 2012-13.
Total market for Heavy Commercial Vehicles (HCV) in Korea was
almost stagnant during FY 2013-14 as compared to the previous
year; however the TDCV achieved growth rate of 25.7% with sales of
2,995 units of HCV in FY 2013-14 as compared to 2,383 units in the
previous year. Medium Duty Trucks segment Industry witnessed 6%
growth in FY2013-14 mainly driven by gradual recovery of Korean
economy. In this segment also Company outperformed Industry by
achieving 19% volume growth with sales of 3,589 units in FY 2013-
14 as compared to 3,017 units in the previous year. TDCV was able
to improve its market share in both, HCV as well as MCV segment.
TDCV exported 4,016 units in FY 2013-14, a reduction of 14.6% as
compared to 4,700 units sold in the previous year. TDCV’s sales
decreased significantly in some of its traditional export markets like
Russia, Laos, South Africa, Vietnam etc. Sales in previous year were
high due to few specific tenders (eg. Kuwait, Iraq) which are not
yearly requirement.
Tata Motors Finance Ltd (TMFL):
Due to severely strained market
conditions, total disbursements (including refinance) by TMFL
declined by 22% at
`
8,767.56 crores as compared to
`
11,180.03
crores. TMFL financed a total of 157,886 vehicles reflecting decline
of 38% over the 254,086 vehicles financed in the previous year.
Disbursements for commercial vehicles were at
`
7,504.35 crores
(123,989 units) as compared to
`
8,814.90 crores (183,514 units) of
the previous year. Disbursements of passenger vehicles declined
by 49% to
`
1,213.46 crores (32,637 units) as compared to
`
2,363.53
