Dear Shareholders,

Despite some setbacks, uneven global recovery continued in 2014. This was largely due to weaker-than-expected global activity in the first half of 2014. The changes are to a large extent a result of greater volatility and uncertainty, presenting a higher risk for the global economy in 2015. The rapid decline in oil prices and quick adjustments in exchange rates – the appreciation of the US dollar and weakening of most other currencies, notably the euro - have had a major impact on global trade flows. Europe remains tense as issues around the Greek economy gather greater scrutiny. In addition to this is the increased geopolitical uncertainty related to Russia-Ukraine and the Middle-East and some signs of economic slowdown in China. These are some of the key macro-concerns that have significant impact on our industry.

THE GLOBAL AUTOMOTIVE MARKET

Despite these geo-political uncertainties, the global automotive industry enjoyed a period of stronger growth and profitability, with annual sales recovering to pre-financial meltdown levels in some key markets like, NAFTA, UK, etc.

Although the economic conditions and pace of recovery differed slightly among North American countries, consumer confidence, credit availability and pent-up demand have played a key role in a more sustained revival of auto demand in this region. However, Europe was weaker as the region is emerging from a sales slump that has lasted over six years. Sales in Russia and South America plunged. Asia-Pacific market posted strong growth mainly driven by China.

INDIAN ECONOMY AND AUTOMOTIVE INDUSTRY

India's GDP grew at a better pace, mainly towards the second half of the fiscal, at 7.3% in 2014-15. The basic parameters of the Indian economy signaled movement in the right direction. A reasonably better performance of the manufacturing sector, reduction in interest rates by RBI by 75 basis points, declining inflation aided by favorable global commodity prices like oil, all provided encouragement for an overall more positive economic outlook.

In 2014-15, the Indian automotive industry registered a growth of over 2.5 percent over last year, with overall automobile exports growing by 5.2 percent. Growth in domestic passenger vehicles was stronger at 5.5 percent with improving consumer sentiment on account of lower fuel price and interest rates. However, Commercial vehicles contracted by 8.4 percent, mainly on account of significant decline in small commercial vehicles. Heavy trucks sales showed early signs of revival with increasing economic activities in the 2nd half of the year.

In terms of policy shifts in the automotive space, the Indian market directionally moved towards safer and greener transportation. Implementation of the Bus Body code and greater safety norms, such as making anti-lock braking system (ABS) mandatory, are all welcome moves. Likewise, implementation of a carefully thought out set of inclusive and progressive emission standards will definitely have a positive impact enabling reduction of harmful emissions.

OUR PERFORMANCE

While FY 14-15 has been a challenging year for Tata Motors, it witnessed reasonable growth in certain key segments – Medium and Heavy commercial vehicles, and Compact Sedans. Tata Motors launched the new Zest that was well received in the market, followed with the launch of Bolt, towards the close of the fiscal. The Company further expanded its ULTRA range of light commercial vehicles and a new range of PRIMA LX trucks, both of which have demonstrated technological capabilities of the Company. Tata Motors also continued its unrelenting journey towards enhancing customer experience and achieving world-class quality through focused initiatives. Consequently, the Passenger cars business improved its ranking and scores in independent customer satisfaction and quality surveys. While these efforts helped in improving our competitiveness in the market, we still suffered market share loss in both the businesses in india with intensifying competition and entry of new players.

For Jaguar Land Rover, this was the fifth successive year of solid growth and robust financial results. This is a reflection of strong product mix supported by the on-going success of the Range Rover, Range Rover Sport and the Jaguar F-TYPE. During the year, JLR revealed three Jaguars – the all-new XE, F-PACE and the new Jaguar XF, followed by the retail sales of the all-new Land Rover Discovery Sport. Jaguar Land Rover business posted impressive growth in UK, US, China, Europe and Asia Pacific. JLR also started its first overseas production in a joint venture facility with Chery Automobile Company Limited in China. This is a state-of-the-art facility with an annual capacity of 130,000 units. JLR also demonstrated its commitment to UK's manufacturing industry by opening its first in-house Engine Manufacturing Centre in Wolverhampton for producing "Ingenium" engine family.

LOOKING AHEAD

The global economy going forward is expected to witness strong growth in certain key economies, but pace of growth is likely to remain uncertain in regions like Europe, Russia, LATAM, etc.

In India, falling inflation, lower interest rates and lowering energy prices will continue to drive greater consumer confidence. The Government's focus in infrastructure investment, ease of doing business and "Make in India" initiative are efforts in the right direction for boosting investment in the country. Operationalising this vision into reality will be key to future growth of the economy and the Indian automotive industry as well.

Tata Motors' strategy hinges on leveraging the long-term growth opportunity in Indian Automobile industry. India is forecast to witness multi-fold increase in motorisation as the working population and GDP per capita increases in the next ten years. The Company is therefore, consistently and strongly investing in products and technologies that would make it future ready and would also fuel international growth. As leaders in the Commercial vehicles industry, Tata Motors is developing a strong pipeline of products and solutions, keeping in mind changing customer preferences and regulations. In Passenger cars also, the Company will continue to excite the market with new innovative products that will seize the imagination of our customers. Customer-centricity and excellence in quality, which are two important pillars for securing sustained growth and success in future, will continue to get special emphasis in the Company. Actions on these two pillars, as well as on cost management, will be taken up with a sense of urgency.

For Jaguar Land Rover, 2015-16 is expected to be another important year for its long-term growth plans. It plans to ramp up production at its new manufacturing facility in China. The new Ingenium engines manufactured in Wolverhampton, as it ramps up, will power string of new models like Jaguar XE, Discovery Sport, etc. This will help in further building sales momentum for both the brands. With continued investments in new products, the pipeline for the business remains strong for sustained growth in future. With all these actions in place, Jaguar Land Rover is well-positioned, strategically and financially, for sustainable growth in the future.

Going forward, I wish all employees, our dealers and our partners from across the world all the very best, as we continue to work together, to deliver great products and services to our customers, and thereby also strengthen the Tata Motors brand. I take great pride in their effort, and I am as excited as they are, about our future. With a passionate Tata Motors and Jaguar Land Rover team, a robust product plan and immense future possibilities, I look forward to a successful year ahead.

Thank you all for your continued support, which I greatly appreciate and cherish.