Tata Motors Limited (TTM): history, ownership, mission, how it works & makes money

A Brief History of Tata Motors Limited (TTM)

Founding and Early Years

Tata Motors Limited, a member of the Tata Group, was established in 1945. Initially focused on manufacturing locomotives and engineering products, the company's first vehicle was produced in 1954, a collaboration with Daimler-Benz for the Tata 110 truck.

Public Listing

In 2004, Tata Motors went public, raising ₹3,500 crore (approximately $760 million at the time) through an IPO. This move was foundational, positioning Tata Motors as a significant player in the automotive industry.

Acquisition of Jaguar Land Rover

In 2008, Tata Motors acquired Jaguar Land Rover (JLR) from Ford for $2.3 billion. This acquisition marked a significant expansion into the luxury vehicle segment.

Financial Performance

As of the fiscal year 2022, Tata Motors reported a revenue of ₹2,45,000 crore (approximately $32.6 billion). The net profit for the year was ₹1,950 crore (about $260 million). The company's market capitalization as of October 2023 stood at approximately $22 billion.

Global Presence

Tata Motors operates in over 150 countries and has 100 subsidiaries. Its manufacturing plants are located in India, the UK, South Korea, Thailand, and South Africa among others.

Product Range

The company produces a wide range of vehicles, from trucks and buses to passenger cars and electric vehicles. The market shares as of 2023 are as follows:

Electric Vehicle Initiative

Tata Motors has made significant investments in electric vehicle technology. By 2023, the company has launched over 10 electric models, with plans to invest ₹75,000 crore (approximately $10 billion) in electric vehicle development over the next five years.

Recent Developments

In 2023, Tata Motors announced plans to further expand its production capacity in India and abroad. The company aims to double its production of electric vehicles by 2025. Additionally, Tata Motors has been recognized as one of the ‘Top 100 Most Sustainable Corporations in the World’ in 2023.

Workforce and Employment

The workforce of Tata Motors is approximately 75,000 employees worldwide, with a commitment to diversity and inclusion. The company has been actively involved in various sustainability initiatives to reduce its carbon footprint.

Conclusion

The journey of Tata Motors has been marked by strategic acquisitions, product innovation, and a strong commitment to sustainability. The company continues to adapt to the changing automotive landscape, focusing on emerging technologies and global expansion.

A Who Owns Tata Motors Limited (TTM)

Current Shareholding Structure

The ownership of Tata Motors Limited (TTM) as of March 2023 is structured as follows:

Promoter Details

The Tata Group, through Tata Sons Private Limited, is the primary promoter of Tata Motors. The key financial details surrounding Tata Sons are:

Foreign Institutional Investors (FIIs) Holdings

As of the latest available data, Foreign Institutional Investors hold approximately 19.6% of Tata Motors. Notable FIIs include:

• BlackRock Inc.
• Vanguard Group
• State Street Corporation

Domestic Institutional Investors (DIIs) Holdings

Domestic Institutional Investors account for about 9.4% of the total shares in Tata Motors. The following institutions are prominent holders:

• Life Insurance Corporation of India (LIC)
• mutual funds under SBI Mutual Fund
• HDFC Mutual Fund

Market Capitalization

The market capitalization of Tata Motors as of October 2023 is approximately INR 2.37 trillion (USD 29.3 billion).

Stock Performance

As of October 2023, Tata Motors shares are trading at approximately INR 616.50 per share, reflecting a year-to-date growth rate of 18.3%.

Global Presence and Subsidiaries

Tata Motors operates in over 175 countries and has multiple subsidiaries, including:

• Tata Daewoo Commercial Vehicle Company (South Korea)
• Tata Motors European Technical Centre (UK)
• Tata Motors South Africa

Compliance and Governance

Tata Motors is compliant with the SEBI (Securities and Exchange Board of India) regulations and follows international corporate governance standards.

Tata Motors Limited (TTM) Mission Statement

Mission Statement Overview

Tata Motors Limited's mission statement reflects its commitment to innovation, sustainability, and customer satisfaction. The company aims to deliver world-class products that cater to the diverse needs of its customers across various segments.

Core Values

• Integrity: Maintaining transparency and ethical practices in business.
• Excellence: Striving for high-quality performance and continuous improvement.
• Innovation: Fostering creativity and new ideas in design and technology.
• Inclusiveness: Engaging diverse perspectives to drive better solutions.
• Sustainability: Committing to environmentally friendly practices and products.

Financial Performance

Tata Motors has exhibited a steady financial performance over the years. The fiscal year ended March 31, 2023, showed a total revenue of ₹3,15,103 crore (approximately $39.9 billion), marking a year-on-year growth of 14.6%.

Market Presence

The company operates in over 175 countries and has a strong manufacturing presence in India, the UK, South Korea, Thailand, South Africa, and Indonesia. Tata Motors’ vehicle portfolio includes:

• Passenger vehicles
• Commercial vehicles
• Electric vehicles

Global Footprint

Recent Developments

Tata Motors has made significant investments in electric vehicle technology. In FY 2022-23, it launched the Tata Nexon EV, which recorded over 15,000 units sold within a few months, contributing to the company's goal of achieving net-zero carbon emissions by 2045.

Employee Engagement

The company employs over 75,000 people globally, with a strong focus on diversity and inclusion in the workplace.

Corporate Social Responsibility

Tata Motors is committed to various corporate social responsibility initiatives focusing on education, healthcare, and community development. In FY 2022-23, the company spent ₹200 crore (approximately $24.5 million) on CSR activities.

Future Goals

The company's strategic roadmap includes:

• Enhancing electric vehicle offerings with a target to lead the EV market in India.
• Expanding to new international markets.
• Investing in advanced manufacturing technologies.

Conclusion

The mission statement of Tata Motors Limited encapsulates its dedication to innovation, sustainability, and customer satisfaction, positioning the company for future growth and success in the automotive industry.

How Tata Motors Limited (TTM) Works

Company Overview

Tata Motors Limited, part of the Tata Group, operates in the automotive industry producing passenger and commercial vehicles. As of March 2023, the company reported a revenue of ₹2.83 trillion.

Business Segments

• Passenger Vehicles
• Commercial Vehicles
• Electric Vehicles
• Automotive Components

Geographical Presence

The company has a significant presence in numerous countries, with operations across Africa, Europe, the UK, the Middle East, South Asia, and Southeast Asia. In FY 2022-2023, Tata Motors generated approximately 25% of its revenue from international operations.

Financial Performance

Production Facilities

Tata Motors has manufacturing plants in various locations, including:

• Pune, Maharashtra
• Jamshedpur, Jharkhand
• Lucknow, Uttar Pradesh
• Sanand, Gujarat
• Chennai, Tamil Nadu

Research & Development

The company invests significantly in R&D, with an expenditure of approximately ₹7,500 crore in the 2022 fiscal year.

Electric Vehicle Strategy

Tata Motors has emerged as a leader in the Indian electric vehicle market. In FY 2022-2023, the company sold over 38,000 electric vehicles, representing a market share of 58% in this segment.

Global Partnerships

The company has established various partnerships to enhance its technology and expand its market reach. Notable collaborations include:

• Partnership with Volkswagen for electric vehicle technology
• Collaboration with various local firms in emerging markets

Challenges and Opportunities

The automotive sector faces challenges, including supply chain disruptions and fluctuating raw material prices. However, Tata Motors is positioned to leverage opportunities in the electric vehicle segment and expanding commercial vehicle demand.

Stock Performance

Future Projections

Analysts forecast that Tata Motors will continue to grow, with projected revenue growth of around 10-12% annually through 2025, driven by new product launches and expanding market presence.

How Tata Motors Limited (TTM) Makes Money

Vehicle Sales

Tata Motors earns a significant portion of its revenue through the sale of vehicles. In FY 2022-23, Tata Motors reported total vehicle sales of approximately 1,731,000 units, yielding revenue of around ₹2,56,160 crores (approximately $34.35 billion).

Financial Services

Tata Motors also generates revenue through Tata Motors Finance (TMF), offering vehicle financing solutions. The revenue from TMF in FY 2022-23 amounted to approximately ₹8,000 crores (around $1.06 billion).

International Operations

The company has a strong international presence, contributing to its revenue through subsidiaries like Tata Daewoo and its operations in Jaguar Land Rover (JLR). In FY 2022-23, JLR had revenues of approximately £21.6 billion (around ₹2,20,000 crores or $29.7 billion).

Focus on Electric Vehicles

Tata Motors is increasingly investing in electric vehicles (EVs). The company sold around 50,000 EVs in FY 2022-23, contributing ₹8,000 crores to total revenue, indicating a growing segment in its portfolio.

Cost Management Strategies

Tata Motors implements various cost management strategies to enhance profitability. In FY 2022-23, the operating profit was reported at approximately ₹25,000 crores ($3.3 billion), reflecting careful management of operating expenses.

Partnerships and Collaborations

Strategic partnerships enhance Tata Motors' revenue streams. Collaborations with companies like Tesla for technology sharing have positioned Tata Motors for growth in the EV market.

Market Position

Tata Motors holds a market share of approximately 6.8% in the Indian automotive sector, with aspirations to grow its share through diverse offerings and expansions.

Future Projections

Forecasts indicate that Tata Motors aims to achieve a revenue target of approximately ₹3,00,000 crores (around $40 billion) by FY 2025-26, driven by innovations in vehicle technology and market expansion.