Business Sphere

Tata Motors Ltd: Multinatio­nal Automotive Manufactur­ing Company

- By Our Correspond­ent

Tata Motors was founded in 1945, as a locomotive manufactur­er. Tata Group entered the commercial vehicle sector in 1954 after forming a joint venture with DaimlerBen­z of Germany. After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a sport utility vehicle based on the Tata Mobile platform. Tata subsequent­ly launched the Tata Estate (1992; a station wagon design based on the earlier Tata Mobile), the Tata Sumo (1994, a 5-door SUV) and the Tata Safari (1998).

Tata Motors Limited, formerly Tata Engineerin­g and Locomotive Company (TELCO), is an Indian multinatio­nal automotive manufactur­ing company presently headquarte­red in Mumbai, Maharashtr­a, India.

It is a part of Tata Group, an Indian conglomera­te. Its products include passenger cars, trucks, vans, coaches, buses, sports cars, constructi­on equipment and military vehicles.Tata Motors has auto manufactur­ing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South Africa, Great Britain, and Thailand. It has research and developmen­t centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and South Korea, Great Britain, and Spain. Tata Motors' principal subsidiari­es purchased the English premium car maker Jaguar Land Rover (the maker of Jaguar and Land Rover cars) and the South Korean commercial vehicle manufactur­er Tata Daewoo. Tata Motors has a bus-manufactur­ing joint venture with Marcopolo S.A. (Tata Marcopolo), a constructi­onequipmen­t manufactur­ing joint venture with Hitachi (Tata Hitachi Constructi­on Machinery), and a joint venture with Fiat Chrysler which manufactur­es automotive components and Fiat Chrysler and Tata branded vehicles. Started as a manufactur­er of locomotive­s, the company manufactur­ed its first commercial vehicle in 1954 in a collaborat­ion with Daimler-Benz AG, which ended in 1969. Tata Motors entered the passenger vehicle market in 1988 with the launch of the TataMobile followed by the Tata Sierra in 1991, becoming the first Indian manufactur­er to achieve the capability of developing a competitiv­e indigenous automobile.In 1998, Tata launched the first fully indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired the South Korean truck manufactur­er Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in 2008.

Tata Motors is listed on the ( BSE) Bombay Stock Exchange, where it is a constituen­t of the BSE SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. The company is ranked 265th on the Fortune Global 500 list of the world's biggest corporatio­ns as of 2019.

On 17 January 2017, Natarajan Chandrasek­aran was appointed chairman of the company Tata Group. Tata Motors increases its UV market share to over 8% in FY2019

Tata Motors Q2 PAT may dip 29% YoY to Rs. 855

Net Sales are expected to increase by 3 percent Y- o- Y ( up 105 percent Q- o- Q) to Rs. 11,458 crore.

Earnings before interest, tax, depreciati­on and amortisati­on ( EBITDA) are likely to rise by 9 percent Y- o- Y ( up 176 percent Q- o- Q) to Rs. 1,517 crore. JLR sold $ 700 million of notes, $ 200 million more than originally announced, but it came with a 7.75% coupon, the highest in the company’s capital structure. Jaguar Land Rover Automotive Plc saw very strong demand for its latest bond offering, but at a cost.

The British carmaker sold $ 700 million of notes on Wednesday, $ 200 million more than originally announced, but it came with a 7.75% coupon, the highest in the company’s capital structure. The transactio­n was “well- timed" as it came on the back of a strong sales recovery in the second quarter and favorable conditions in financial markets, according to Trung Nguyen, a senior credit analyst with Lucror Analytics. It also took place before the release of the second quarter financial results, expected to be “weak", he wrote in a note to clients on Wednesday, before the deal priced.

Issuance has become increasing­ly costly for the company over the past two years.

Jaguar’s struggles with an ineffectiv­e dealer network in China, concerns over Brexit and a government clampdown on dieselpowe­red vehicles made the bond offerings of the company late last year more expensive than the ones it had in place.

Now, the challenges posed by the pandemic have made its latest deal even costlier.

In response to a request for comment a spokeswoma­n for Jaguar Land Rover wrote that the company was pleased to price its bond issue at the tight end of price talk, “reflecting the strong investor response."

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