Management Discussion and Analysis
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During the year, the Company recorded sales of 141,846 vehicles (including Jaguar Land Rover) in the domestic market; a decline of 38.1%. The domestic market share was 5.8% as compared to 9.0% last year.

The Company introduced a host of new products including the E-max range of CNG vehicles, Vista tech, the refreshed and improved Sumo Gold.

Nano Awesome Campaign was launched during the year, along with the launch of Nano Twist with electronic power steering, thereby continuing to take the Nano Brand closer to the youth.

During the Delhi Auto Expo 2014, Tata Motors Flagship products, the Bolt hatchback and the Zest Sedan were unveiled, to much appreciation. The Company's Horizonext strategy was unveiled, showcasing the direction of Design, Performance & Connectivity that are going to be the brand pillars going ahead. The Expo also saw the Nexon Compact SUV concept and the connectivity concept for the Company's future cars being unveiled.

The drive to improve sales experience for customer with a focus on décor and ambience in showrooms across country continues. The dealership network is also being augmented to cater to the demand for Bolt and Zest launch.

The Company sold 2,805 Jaguar and Land Rover vehicles through its exclusive dealerships in India registering an impressive growth of 12.5%. The globally popular Range Rover Sport and Jaguar XF 3.0D was launched during the year. New brand touch points were created in social media for both Jaguar and Land Rover in a short span. Besides Land Rover Experience events were launched through which over 600 Dynamic Drive Off-road Experiences were delivered. 1st ever Land Rover Expedition was also launched in India that received a stupendous response. A new after-sales customer engagement initiative was introduced through Service Clinics in various dealer cities. Used Car program was introduced through 11 Outlets and achieved a 48% penetration in March 2014.

Tata Motors Sales, Distribution and Support: The sales and distribution network in India as of March 31, 2014, comprised 2,420 sales contact points for the Passenger and Commercial Vehicle businesses. The Company has deployed a Customer Relations Management (CRM) system at all its dealerships and offices across the country, largest such deployment in the automotive market. The combined online CRM / DMS system supports users both within the Company and among the distributors in India and abroad.

The Company's 100% subsidiary, TML Distribution Company Ltd (TDCL), acts as a dedicated distribution and logistics management company to support the sales and distribution operations of vehicles in India. TDCL provides distribution and logistics support for vehicles manufactured at the Company's facilities. TDCL helps us improve planning, inventory management, transport management and timely delivery.

The Company provides financing support through its wholly-owned subsidiary, Tata Motors Finance Ltd (TMFL). (Refer discussion on TMFL).

In addition to dealer service workshops, 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 Exports: The Company markets its commercial and passenger vehicles in several countries in Europe, Africa, the Middle East, South East Asia and South Asia. However, the Company's exports of vehicles manufactured in India decreased marginally by 2% in FY 2013-14 to 49,922 units from 50,938 units in FY 2012-13. Commercial vehicles export sales of the Company shrunk by 2.3% to 43,083 units impacted by the external environment influencers in Europe, the Middle East, and South Asia and passenger vehicle sales remained flat 6,839 units.

For FY 2013-14, the Company's top five export destinations accounted for approximately 73% and 88% of the exports of commercial vehicles and passenger vehicle units, respectively. The Company continues to strengthen its position in the geographic areas it is currently operating in and exploring possibilities of entering new markets with market characteristics similar to the Indian market.

The Company has set up a network of distributors in almost all countries where the vehicles are exported. The distribution network includes local dealers for sales and servicing products in the respective regions. The Company has also deputed its representatives overseas to support sales and services and to identify opportunities.

Jaguar Land Rover business: JLR has significantly consolidated its position in the premium car segment. The strengths of JLR include iconic globally positioned brands, strong product portfolio of award-winning luxury and high performance cars and premium all-terrain vehicles, global distribution network, strong product development and engineering capabilities, and a strong management team. The brand-wise wholesale sales of JLR are set forth in the table below:-

During FY 2013-14, total sales increased to 429,861 units from 372,062 units in FY 2012-13; an increase of 15.5%. Jaguar volumes increased by 37.2% mainly contributed by the introduction of the Jaguar F-TYPE and the smaller powertrain derivative of XF and XJ and XF Sportbrake. Land Rover volumes increased by 11.6%, mainly contributed by the New Range Rover, New Range Rover Sport, and Range Rover Evoque sales. JLR exported 354,005 units in FY 2013-14 compared to 304,034 units in FY 2012-13; an increase of 16.4%. JLR had a successful year of continued growth in all markets led by China up 34% from last year to record retail sales of 103,077. North America and Asia Pacific regions also performed strongly, up 20.2% and 27.7% to 75,671 and 22,795 respectively. The UK and Europe, partly reflecting the economic headwinds, showed more modest growth, up 6.2% and 2.3% to 76,721 and 82,854 units respectively.

Jaguar designs, develops and manufactures a range of premium cars and sports cars recognised for their design, performance and quality. Jaguar's range of products comprises the XF and XJ saloons, the F-TYPE two seater sports car and the XK coupé and convertible.

  • The XF, launched in 2008, is a premium executive car that merges sports car styling with the sophistication of a luxury saloon. The 2013 Model Year XF range also included for the first time an all-wheel drive version of the new V6 petrol engine for the US and European markets and a 2.0 litre petrol version for the US and Chinese markets which helped to grow the volumes for Jaguar in FY 2013-14.
  • The XJ is Jaguar's largest luxury saloon vehicle, powered by a range of supercharged and naturally aspirated 5.0-litre V8 petrol engine and a 3.0-litre diesel engine. Using Jaguar's aerospace inspired aluminium body architecture, the new XJ's lightweight aluminium body provides improved agility, and fuel and CO2 efficiency. The 2013 Model Year also included an all-wheel drive version and a 3.0 litre V6 petrol version for the US and European markets excluding the United Kingdom and a 2.0 litre petrol version for the Chinese market.
  • The F-TYPE, a two seat sports car, inspired by the 2001 C-X16 concept cars, with an all-aluminium structure and enhanced technology with the power of Jaguar's latest 3.0 litre V6 and 5.0 litre V8 engines, was available for retail customers from April 2013 onwards and since then, has received numerous awards and appreciation by the auto media. In November 2013, Jaguar unveiled the F-TYPE Coupé which went on sale in April 2014.
  • In March 2013, Jaguar unveiled two new additions to its R performance range, the XJR sedan and the XKR-S GT. The 550PS XJR - Jaguar's new flagship sports saloon - combines a supercar performance and assertive looks with the high level of luxury already associated with the XJ range. The XKR-S GT is the ultimate road-going but track-ready version of the XK coupe.
  • At the Frankfurt Motor Show in September 2013, Jaguar revealed its first ever crossover concept vehicle, the Jaguar CX17, based on a new modular scalable advanced aluminum architecture. JLR has also announced the new Jaguar XE, a mid-sized sedan which will be built on this new modular architecture. This will allow Jaguar to grow its product portfolio and target high growth areas of the premium market.

Land Rover designs, develops and manufactures premium all-terrain vehicles that aim to differentiate themselves from the competition by their capability, design, durability, versatility and refinement.

Land Rover's range of products comprises the Defender, Discovery, Freelander, Range Rover (including the new Range Rover), Range Rover Evoque and Range Rover Sport (including the new Range Rover Sport).

  • The Defender is one of Land Rover's most capable SUVs, and is recognised as an iconic vehicle in the segment targeting extreme all-terrain capabilities and payload/towing capability.
  • The Freelander 2 is a versatile vehicle for active lifestyles, matching style with sophisticated technology and offroad capability. The Freelander 2, offering was significantly enhanced for the 2013 Model Year with the introduction of a turbocharged 2.0-litre petrol engine, giving superior performance as compared to the 3.2-litre engine it replaces, while also reducing CO2 emissions.
  • The Discovery 4 is a mid-size SUV that features genuine all-terrain capability and versatility, including full seven-seat capacity. Recent power train innovations have delivered an improvement in CO2 for the 3.0-litre LR-TDV6 engine.
  • The Range Rover Evoque is the smallest, lightest and most fuel-efficient Range Rover to date, available in 5-door and coupe body styles and in both front-wheel drive and allwheel drive derivatives. Since its launch in September 2011, consumer interest and demand have been consistent across the globe and the car has been a major success for JLR.
  • The Range Rover Sport combines the performance of a sports tourer with the versatility of a Land Rover. At the 2013 New York International Auto Show, Land Rover debuted the All New 2014 MY Range Rover Sport built on a weight saving aluminium architecture, to save upto 420kgs. The All New Range Rover Sport is the fastest, most agile and most responsive Land Rover ever, and has been a tremendous success since launch.
  • The Range Rover is the flagship product under the Land Rover brand with a unique blend of British luxury, classic design, high-quality interiors and outstanding all-terrain ability. The new all-aluminium version, was launched in the third quarter of FY 2012-13. The new Range Rover was declared the world's top SUV by The Sunday Times, won Top Gear magazine's ''Luxury Car of the Year'' and was recently awarded the maximum 5-star safety rating by Euro NCAP.

New Product Launches: The new "Discovery Vision" Concept car was unveiled at New York International Auto Show in April 2014 to an enthusiastic response amongst auto media and journalists. Land Rover Discovery Sport (Freelander replacement) was announced as the first new member of Discovery family. It is expected to be available for retail sales in 2015.

Jaguar Land Rover's performance in key geographical markets on retail basis

United Kingdom: Against the backdrop of improved labour market conditions, rising consumer and business confidence and buoyed by cash compensation from the mis-selling of payment protection insurance, total vehicle sales jumped 12.5% compared to the previous year. Jaguar Land Rover sales climbed 6.2% on the year, supported by a strong performance from Jaguar (10.7% growth) and the launch of JLR F-TYPE convertible. 5% annual growth in Land Rover sales reflects JLR dominant market position in the UK for SUVs.

United States and North America: In FY 2013-14, total passenger car sales expanded by 6.2%. The launch of the Jaguar F-TYPE and new Range Rover Sport helped Jaguar Land Rover beat the US market three times, growing sales by 19.2%. Alongside a strong expansion of business in Canada, total Jaguar Land Rover sales in North America grew 20.2%.

Europe: In Germany, Jaguar Land Rover sales grew 6.5%, against a meagre 0.2% for total passenger cars. In Italy, Jaguar Land Rover sales edged up 1.1%, driven by Land Rover, against a total market contraction of 1.3%. Although in France sales fell across the board, the most surprising performance came from Spain where, after three years of double-digit contraction, the market rebounded by 11.7% and Jaguar Land Rover sales rose 14.7%.

China: Passenger car sales reached a new peak of almost 18.4 million units in the year to March, growing faster than either of the previous two years. Total JLR sales in the China Region reached 103,077 up from 77,075 in FY 2012-13. Jaguar volumes more than doubled to 19,891, while Land Rover sales reached 83,186.

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.