Tata Motors is an Indian multinational automotive manufacturing company and a member of the Tata Group, one of India's largest conglomerates. Tata Motors' sales for May 2023 in the domestic and the international markets stood at 74,973 vehicles, compared to 76,210 units during May 2022 - showcasing a YoY decline of 2%, according to the company data. Passenger vehicle sales for May 2023 stood at 45,984 units, showcasing a positive YoY growth of 6%. Meanwhile, total commercial vehicle sales were at 28,989 units, a fall of 12% YoY, the company announced on June 1, 2023.
In the passenger vehicle industry, improved availability of vehicles, the strength of pending orders, and demand for new launches have been working for the space. For Tata Motors, the JLR retail sales have been improving substantially from April onwards. Tata Motors market share as of April of 2023 was 38.70%.
Till June 23, 2023, year-to-date, Tata Motors share price had risen ₹164, or 42%, as per BSE data. Over the last one year, Tata Motors share price is up ₹152, or 37%. Over the last 10 years, Tata Motors share price has gained ₹275, or 97%, according to BSE data.
Tata Motors subsidiary, Tata Technologies is in the midst of preparations for its initial public offering. Tata Technologies filed its DRHP with the market regulator Securities and Exchange Board of India (Sebi) on March 9. The Tata Tech IPO is one of the most awaited issues this year. Tata Motors stock is in focus ahead of the IPO.
Tata Motors produces vehicles in all segments - including cars, trucks, buses and military vehicles. Tata Motors has a strong presence in both the domestic and international markets. In India, it is one of the leading automobile manufacturers and has a significant market share in various vehicle segments.
Tata Motors Formation
Founded in 1945 as Tata Engineering and Locomotive Co. Ltd., the company was renamed Tata Motors in 2003. It has 3 categories of products – passenger vehicles, commercial vehicles and electric vehicles. Some of the popular Tata Motors passenger car models include the Tata Tiago, Tata Tigor, Tata Nexon, Tata Harrier, and Tata Safari. These cars cater to different segments and are known for their safety features, performance and competitive pricing. Tata Motors has also ventured into electric vehicles with models like the Tata Nexon EV and Tata Tigor EV.
In the commercial vehicle segment, Tata Motors produces a wide range of trucks, buses, and vans. It offers vehicles for various applications, including cargo transportation, passenger transportation, and construction. Tata Motors' commercial vehicle line up includes the Tata Ace, Tata Ultra, Tata Prima and Tata Starbus, among others.
Tata motors has a strong international presence and operates in several countries across the globe. It has established manufacturing plants in India, the UK, South Africa, Thailand and Argentina.
Tata Motors Dividend FY23
For the fiscal year that concluded on March 31, 2023, the Tata Motors board declared a final dividend to its shareholders of ₹2 per ordinary share and ₹2.10 per "A" ordinary share, both with a face value of ₹2. The most recent bonus that Tata Motors had announced was a 3:5 bonus in 1995. In 2011, it reduced the face value of Tata Motors share price from ₹10 to ₹2.
The following is the Balance Sheet analysis of Tata Motors:
The company's current liabilities during FY23 stood at ₹1,550 billion as compared to ₹1,507 billion in FY22, thereby witnessing an increase of 2.9%.
Long-term debt fell to ₹887 billion during FY23 as compared to ₹978 billion during FY22, a fall of 9.3%.
Current assets rose 3% and stood at ₹1,507 billion, while fixed assets stood at ₹1,794 billion in FY23.
Overall, the total assets and liabilities for FY23 stood at ₹3,309 billion as against ₹3,267 billion during FY22, thereby witnessing a growth of 1%.
The Jaguar Land Rover Journey
Tata Motors acquired the British luxury car manufacturer ‘Jaguar Land Rover (JLR)’ in 2008. JLR now operates as a subsidiary of Tata Motors. They produce high-end luxury cars, SUVs and electric cars under the Jaguar and Land Rover brands. JLR has a global presence and is known for its premium vehicles, iconic designs and advanced technology. Tata Motors operates in several countries across the globe and has manufacturing plants in India, the United Kingdom, South Africa, Thailand and Argentina. Tata Motors has a market presence in several international markets, including Europe, Africa, the Middle East, South America and Southeast Asia.
Tata has played a significant role in shaping the Indian Automotive industry. It was the one to introduce affordable but feature-rich vehicles which cater to the needs of consumers. The launch of Tata Indica in 1988 was a milestone for Tata Motors. It marked the company’s entry into the passenger vehicle market of the automotive industry. The Tata Nano launch in 2009 was positioned as the world’s first most affordable car and aimed at making transportation accessible to the masses in India.
The Electric Vehicle Play
Tata Motors has been actively promoting electric mobility in India and globally and has made significant strides in the EV market. It introduced electric variants of its existing models such as the Tata Nexon and Tata Tigor. It has invested in research and development of new EV platforms and battery technologies to enhance the performance, range and affordability of electric vehicles. It is also looking at making the country more EV-friendly by providing a comprehensive ecosystem by developing charging infrastructure, battery recycling and sustainable energy solutions. Tata Motors has several R&D centers in India and around the world, including the Tata Motors European Technical Center (TMETC) in the UK. It focuses on vehicle design, engineering, alternative fuels, electric mobility and connected car technologies.
Tata Motors strives to follow sustainable manufacturing processes. It has implemented initiatives to reduce energy consumption, water usage and wate generation in its production facilities. It promotes the use of renewable energy sources such as solar power in its operations and has been exploring alternative materials and lightweighting technologies to enhance fuel efficiency as well as reduce the environmental impact such as the carbon footprint of its vehicles. It aims to achieve carbon neutrality in its operations. Its sustainability initiatives also include its involvement in the community in the way of development programs to promote education, healthcare and skill development.
Tata Motors has worked together with a variety of technological partners to take use of their knowledge and create original solutions. It has collaborated on digital transformation projects, linked automobile technologies, and advanced analytics with major international firms including Microsoft and Tata Consultancy Services (TCS). In order to investigate cutting-edge technologies like artificial intelligence, autonomous driving, and smart mobility solutions, Tata Motors has also worked with academic institutions and research organisations.
To benefit from its knowledge and improve its product offerings, Tata Motors has formed partnerships with renowned foreign automakers. One standout partnership is with Fiat Chrysler Automobiles (FCA) for the creation and exchange of vehicle platforms and technology. To increase its visibility in foreign markets, Tata Motors has also partnered with organisations like Jardine Matheson, Marcopolo, and Thonburi Automotive Assembly Plant Co. Ltd. (TAAP).
Tata Motors is well-known in the defense industry and provides specialised cars to the military and paramilitary organisations. Troop carriers, trucks, armored vehicles, and support vehicles are just a few of the company's many defense vehicle options. To research and produce cutting-edge defense equipment and solutions, Tata Motors has partnered with international defense manufacturers.
The company has received several awards and recognition for its products and initiatives.
According to Brand Finance, Tata Motors was the 41st most valuable brand in India in 2014.
The Economic Times recognised Tata Motors as the 10th most innovative firm in India in 2015.
In 2016, Fortune India named Tata Motors as the 14th most admired company in India.
According to the Dow Jones Sustainability Index, Tata Motors was the 12th most environmentally friendly business in India in 2017.
In the Global NCAP crash tests, the Tata Nexon SUV became the first Indian vehicle to receive a perfect 5-star adult safety rating.
The coveted Indian Car of the Year (ICOTY) award has been given to the Tata Tiago and Tata Altroz.
For its contribution to electric mobility, the Tata Nexon EV has been named the Green Car of the Year by numerous organisations.
Tata Motors has also been involved in events such as the Tata Prima Truck Racing Championship in India and other motorsports events to showcase its vehicles’ performance and reliability. This helps in brand promotion along with strategic partnerships, sponsorships and marketing campaigns. It has collaborated with sports teams, celebrities and events to create brand visibility.
Tata Motors has an effective after-sales service network to assist its clients. It has dealerships and authorised service centres all over India and in many other countries. In order to assure customer happiness and vehicle lifetime, the company provides complete maintenance, repair, and replacement parts services. Online service booking and customer support are only two of the digital platforms and efforts that Tata Motors has implemented to improve the after-sales experience.
In order to meet the demand for its passenger and commercial vehicles, Tata Motors has expanded its sales and distribution networks in international markets. Tata Motors' global sales contribute to its revenue and further solidify its position as a major player in the automotive industry.
The company places a strong emphasis on vehicle safety. Other than the high safety ratings its models have received in the crash tests by Global NCAP (New Car Assessment Program), to improve occupant safety, the corporation has included safety equipment including airbags, anti-lock braking systems (ABS), electronic stability programmes (ESP), and improved structural designs to its vehicles.
In order to create cutting-edge technology, such as electric and autonomous vehicles, Tata Motors plants to continue investing in research and development. The firm has stated its intention to release a variety of electric vehicles in the upcoming years in order to encourage sustainable mobility. Tata Motors also aims to increase its presence in emerging markets and widening its geographic reach.
Frequently Asked Questions
Q. What are the offerings in the Tata Motors portfolio?
A. Tata Motors has a diversified portfolio, which includes passenger cars, sports utility vehicles, trucks, buses and defence vehicles, according to the company website.
Q. When was Tata Motors established?
A. In 1945, Tata Motors started manufacturing locomotives and other engineering products.
Q. What is the face value of Tata Motors share price?
A. The face value of Tata Motors share price is ₹2 a piece.
Q. Which group is Tata Motors and what is the settlement period for Tata Motors share price?
A. Tata Motors share price is part of Group A and the settlement period for the stock is T+1, which means buyers get the shares a day after they buy the Tata Motors shares.
