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Tata Motors
TATA MOTORS

ANNUAL REPORT
2019-2020



Turnaround 2.0





E-mobility is an irreversible megatrend, given the imperative to improve the pollution profile and energy security for India. TML is looking at the EV business as a strategic opportunity to establish itself as a strong player in the new and evolving PV Industry. TML has developed a comprehensive approach to address the barriers and 'win proactively in the e-mobility space.

TML showcased the largest portfolio of EVs in India at the Auto Expo 2020. TML launched the Tigor EV+ with 213 km range, which has received a strong market response. It also happens to be the highest selling EV in India.

In January 2020, TML launched the Nexon EV, powered by the state-of-the-art EV technology ‘ZIPTRON’, a high voltage, high performance technology designed specifically for Indian conditions by leveraging TML’s global engineering network. Aspirational yet accessible, the Nexon EV has become the highest selling electric car in Q4 FY20. Key highlights of ZIPTRON include a zippy driving experience, long range, fast charging capability, eight years of battery and motor warranty, and IP67 waterproof and dustproof rating.

Going forward, TML will continue to explore and target multiple customer groups to increase its presence in the evolving EV industry.

Win proactively in EV
Tata UniEVerse

TML has launched an EV ecosystem, the Tata UniEVerse, to closely leverage the strengths and experience of other Tata group companies to create a viable environment to drive the adoption of EVs in India. Key elements of the ecosystem include charging solution, supplier base for EV components, vehicle financing and mobility service providers.

Charging solution

TML has partnered with Tata Power to proactively address the challenge of charging. Both companies decided to work together to provide a suite of charging solutions for homes and workplaces and for captive and public charging.

Supplier base for EV components

In its attempt to build the component supplier ecosystem, TML collaborated with Tata Chemicals for manufacturing lithium-ion battery cells, exploring active chemicals manufacturing and battery recycling. TML has also collaborated with Tata AutoComp for the localisation of battery pack assembly and motor assembly.

Vehicle financing

For attractive financial solutions for both fleet and personal segments, TML has partnered with Tata Motors Finance and Tata Capital to introduce affordable financing solutions.

Digital experience

Tata Croma stores are hosting a store-in-store concept to provide an immersive digital experience for the Nexon EV.



Manage challenges
  • Securing growth through reimagined CV and PV strategies
  • Securing cost optimisation to the tune of ₹1,500 crore
  • Securing cash by driving capex and working capital savings to the tune of ₹4,500 crore and obtaining funding worth ₹4,000 crore
LEADING THROUGH THE CRISIS

TML continues to engage with stakeholders, including customers, suppliers and employees during the crisis. Operations were restarted with limited, essential staff in each plant, adhering to all mandated safety norms while efficiently meeting operational requirements. TML will scale operations in a graded manner, as the entire enabling ecosystem of suppliers, vendors, dealers and customers comes up to speed. TML is cautiously optimistic and staying agile to cater to an evolving demand.

The lockdown was an opportunity to accelerate TML's digital journey and evolve new ways of working, while servicing and supporting customers. By mid of May 2020, over 400 sales outlets and 885 workshops for CVs and nearly 200 dealerships and 300 workshops for PVs had begun operations with a new set of Standard Operating Procedures (SOPs) defining minimal interactions and maintaining prudent social distance while engaging with customers. In the recent weeks, customers have initiated new bookings, deliveries of PVs have commenced and workshops are seeing an increasing inflow of vehicles for servicing.

All discussions with customers are being done virtually using digital tools and any meetings, if necessary, are being conducted with prior appointments and post verification of all requirements. Documents for vehicle insurance and registration are being collected via mail or specially installed drop boxes, and vehicle deliveries are being done only after all formalities are completed. Customer vehicles arriving at workshops for repairs and servicing too are completely sanitised before being handed over post service. In the case of test drives, limited persons are allowed on board and the vehicle is fully sanitised, including replacing the protective covers shielding the interiors of the vehicle.

For its CV customers, TML extended all possible technical support to keep vehicles running during the lockdown. Additionally, timelines of vehicle warranty, free services and Tata Suraksha AMC have also been extended.

OUTLOOK

TML is a flagship of the Tata group and enjoys full promoter support. With the Turnaround 2.0 plan, TML is confident that it is on the right track for achieving its mid- to long-term plans. TML remains committed to Consistent, Competitive and Cash-accretive growth and intends to outperform the market by activating its exciting BSVI product range. TML will sharpen its focus on customer engagement in the CV business and on front-end activation in the PV business. TML is gearing up to 'Win decisively' as the consumer demand recovers.

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