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Table - 3
Category Industry sales Company Sales* Market Share
  Growth   FY
  Growth   FY
Micro   74,521   70,431   5.8%   74,521   70,431   5.8%   100.0%   100.0%
Compact   856,072   834,271   2.6%   176,104   159,412   10.5%   20.6%   19.1%
Mid-size   204,729   174,074   17.6%   19,645   38,167   -48.5%   9.6%   21.9%
Executive   41,557   49,269   -15.7%   4,796   8,536   -43.8%   11.5%   17.3%
Premium and Luxury   12,027   12,097   -0.6%   985   425   131.8%   8.2%   3.5%
Utility Vehicles   368,272   315,417   16.8%   49,035   41,968   16.8%   13.3%   13.3%
Vans (Note a)   152,019   161,939   -6.1%   7,958   1,313   506.1%   5.2%   0.8%
Total (Note b)   2,538,418   2,450,356   3.6%   333,044   320,252   4.0%   13.1%   13.1%

Source: Society of Indian Automobile Manufacturers report and Company Analysis. * including Fiat & Jaguar Land Rover branded cars.
Note (a) Excludes V2 Van sales.
Note (b) Total Industry nos. include sales in other segments

Passenger Vehicles:

The growth of Passenger Vehicles segment decelerated to 3.6%, during the year; much lower as compared to the Commercial Vehicles. Consequent to the inflation and slowing economy, there was a decrease in disposable income, impacting demand for cars. Petrol prices increased substantially during the year, increasing the total cost of ownership of petrol cars. This resulted into deferment of purchases and shift in demand to diesel vehicles. Further, the increase in interest rates adversely impacted car financing, taking toll on demand.

The industry performance and the Company's performance in the Passenger Vehicle segment are given below (Table - 3):-

During the year, the Company recorded its highest ever sales of 333,044 vehicles in the domestic market, recording a growth of 4.0% over last year, through launch of a variety of new products – the Indica Vista and the Sumo Gold BS4 variant. The Indigo eCS and the Indica eV2, with segment-leading fuel efficiencies, continued to gain traction and market share as fuel prices increased. The Venture, launched last year, continued to receive good market response.

Nano sales continued to grow with volumes increasing by 5.8% over last year to 74,521 units. With focused initiatives to increase reach and penetration, by appointing Nano exclusive dealers, the Company is targeting rural customers to drive growth. During FY 2011-12, the Company launched Nano 2012, with several new features, including improved fuel efficiency. The Company also started exporting Nano to neighbouring countries such as Nepal and Sri Lanka.

The Mid-size and Utility Vehicles category, recorded 17.6% and 16.8% growth on the back of demand for diesel cars and new product / variants. The Company's sales in the mid size category suffered as competition severely intensified with multiple new launches from other industry players in this segment.

The Company recorded a healthy growth of 16.8% in Utility Vehicle segment, at par with industry growth during the year, with sales increasing to 49,035 units. Increase in sales of the Sumo post the launch of the BS4 variant of the Sumo Gold combined with increase in the sales of the Safari, contributed to this growth. The new Safari Storme was displayed at the New Delhi Auto Expo in January 2012 to be launched in the FY 2012-13.

The Company sold 17,129 Fiat cars in FY 2011-12, with a sale of 4,796 Linea and 12,297 Grande Punto. Fiat stood at the tenth position among the major car players in the country. The Tata-Fiat dealer network was upgraded to 170 dealer facilities across 129 cities as of March 31, 2012. Fiat was ranked ninth in the JD Power 2011 India Customer Service Index Survey. During the year, the Company launched the Fiat Linea 2012 and the Fiat Grande Punto. In May 2012, JV partners decided that in order to further develop the Fiat brand in India, management control of Fiat's commercial and distribution activities will be handed over to a separate Fiat Group owned company in India.

The Company sold 2,274 Jaguar Land Rover (JLR) vehicles through its exclusive outlets in India registering an impressive growth of 91%. The Company launched the globally popular Range Rover Evoque. During the year, the Company expanded its dealership network to 13 outlets covering 11 cities. The Company commenced the local assembly of the Land Rover Freelander 2, at Pune in May 2011, which has been received extremely well in India.

Tata Motors Sales and Distribution: The sales and distribution network in India as of March 31, 2012, comprises approximately 2,150 sales contact points for the Passenger and Commercial Vehicle businesses. The Company formed a 100% subsidiary, TML Distribution Company Ltd (TDCL) in March 2008, to act as a dedicated distribution and logistics management company to support the sales and distribution operations of vehicles in India. The Company believes that this has improved the efficiency of our selling and distribution operations and processes.

TDCL provides distribution and logistics support for vehicles manufactured at our facilities. TDCL helps us improve planning, inventory management, transport management and timely delivery. The Company has deployed a Customer Relations Management (CRM) system at all our dealerships and offices across the country. The system is certified by Oracle as the largest Siebel deployment in the automotive market. The combined online CRM system supports users both within the Company and among the distributors in India and abroad.

The Company provides financing support through the whollyowned subsidiary, Tata Motors Finance Ltd (TMFL), to end customers and independent dealers, who act as the Company's agents. During FY 2011-12, approximately 27% of vehicle unit sales in India were made by the dealers through financing arrangements provided by TMFL as compared to 21% in FY 2010-11. The total vehicle finance receivables (consolidated) outstanding as at March 31, 2012 and 2011 amounted to 15,747.67 crores and 10,095.62 crores, respectively.

The Company uses a network of service centers on highways and a toll-free customer assistance center to provide 24-hour on-road maintenance (including replacement of parts) to vehicle owners. The Company believes that the reach of the sales, service and maintenance network, provides us with a significant advantage over the competitors.

Tata Motors Competition: The Company faces competition from various domestic and foreign automotive manufacturers in the Indian automotive market. Improving infrastructure and robust growth prospects compared to other mature markets, are now attracting a number of automotive OEM's to India. These companies have either formed joint-ventures with local partners or have established independently-owned operations in India. The global competitors bring international experience, global scale, advanced technology and significant financial support, for the operations in India. The competition is likely to further intensify in the future.

The Company has designed its products to suit the requirements of the Indian market based on specific customer needs such as safety, driving comfort, fuel efficiency and durability. The Company believes that its vehicles are suited to the general conditions of Indian roads, the local climate and comply with applicable environmental regulations currently in effect. The Company also offers a wide range of optional configurations to meet the specific needs of its customers. The Company is developing products to strengthen its product portfolio in order to meet customer expectations of aspiring for world-class products.

Tata Motors Exports: The Company continues to focus on its export operations. The Company markets its commercial and passenger vehicles in several countries in Europe, Africa, the Middle East, South East Asia and South Asia. The exports of vehicles manufactured in India increased by 8.6% in FY 2011-12 to 63,105 units from 58,089 units in FY 2010-11, with significant economic improvement in our major international markets such as the Indian sub-continent, South Africa and the Middle East.

For FY 2011-12, the Company's top five export destinations accounted for approximately 76% and 85% of the exports of commercial vehicles and passenger vehicle units, respectively. The Company continues to strengthen its position in the geographic areas it is currently operating in and exploring possibilities of entering new markets with similar market characteristics to the Indian market.

The Company has set up a network of distributors in almost all countries where the vehicles are exported. The distribution network includes appointing local dealers for sales and servicing products in the respective regions. The Company has also deputed its representatives overseas to support sales and services and to identify opportunities.

Table - 4
    FY 2011-12 FY 2010-11
    Units   %   Units   %
Jaguar   54,039   17.2%   52,933   21.8%
Land Rover   2,60,394   82.8%   2,43,620   78.2%
Total   3,14,433   100.0%   1,90,628   100.0%

Jaguar Land Rover business: On June 2, 2008, the Company acquired the global business relating to Jaguar Land Rover which include three major production facilities and two advanced design and engineering centers in United Kingdom, a worldwide sales and dealership network, intellectual property rights, patents and trademarks. Since then, Jaguar Land Rover has significantly consolidated its position in the premium car segment.

The strengths of Jaguar Land Rover include its internationally recognized brands, strong product portfolio of award-winning luxury and high performance cars and premium all-terrain vehicles, global distribution network, strong product development and engineering capabilities, and a strong management team. The total sales of Jaguar Land Rover are set forth in the table below (Table - 4):-

Jaguar designs, develops and manufactures premium luxury saloons and sports cars, recognised for their performance, design and unique British style. Jaguar's range of products comprises the XK sports car (coupe and convertible), the XF saloon and the new XJ saloon.

The current XK was launched in 2009, and the XK range was significantly revised with a new look for 2011. The new XKR-S, which was unveiled at the Geneva Motor Show on March 1, 2011, is the sporting flagship for Jaguar revitalised XK line-up. The XKR-S is the fastest and most powerful production sports car that Jaguar has ever built.

The XF, launched in 2008, is a premium executive car that merges sports car styling with the sophistication of a luxury saloon. The Jaguar XF is Jaguar's best-selling model across the world by volume and it has garnered more than 80 international awards since its launch, including being named "Best Executive Car" by What Car? Magazine, in every year since its launch. For 2012 model year, fundamental design changes to the front and rear aim to bring a more assertive, purposeful stance to the vehicle, closer to the original C-XF concept car. In addition, the Jaguar 2012 model year line-up included a new four-cylinder 2.2-litre diesel version of the XF with Intelligent Stop-Start Technology, making it the most fuel-efficient Jaguar yet. In 2012, Jaguar has announced a further expansion of the XF range with the introduction of the Sportbrake, due later in 2012. The Sportbrake has increased rear load space to appeal to a wider range of buyers.

The XJ is Jaguar's largest luxury saloon vehicle, powered by a choice of supercharged and naturally aspirated 5.0-litre V8 petrol engine and a 3.0-litre diesel engine. A 3.0-litre V6 petrol engine was launched in the Chinese market in early 2011, which has driven sales growth in the year. Using Jaguar's aerospace inspired aluminium body architecture, the XJ's lightweight aluminium body provides improved agility and economy. In the year, the XJ has been upgraded to include a new Executive Package and a Rear Seat Comfort package, which makes the Jaguar flagship model the ultimate executive limousine experience.

The Jaguar C-X16 concept car was showcased during 2011 and it was announced at the New York Auto Show that this will be the basis of the new F-type, a two seater sports car due for launch in the spring of 2013. The car will make extensive use of aluminium in its build, based on the expertise Jaguar Land Rover has developed in previous models.

Land Rover designs, develops and manufactures premium all-terrain vehicles that aim to differentiate themselves from the competition by their simplicity, ability, strength and durability. Land Rover's range of products comprises the Defender, Freelander 2 (LR2), Discovery 4 (LR4), Range Rover Evoque, Range Rover Sport and Range Rover.

Land Rover products offer a range of powertrains, including turbocharged V6 diesel, V6 petrol engines and V8 naturally aspirated and supercharged petrol engines, with manual and automatic transmissions.

The Defender is Land Rover's toughest off-roader, and is recognised as a leading vehicle in the segment targeting extreme all-terrain abilities.

The Freelander 2 is a versatile vehicle for both urban sophistication and off-road capability. For the 2012 Model Year, Jaguar Land Rover offered a choice of 4 Wheel Drive and 2 Wheel Drive, with an eD4 engine capable of 4.98L/100km which was especially well received in major European markets.

The Discovery 4 is a mid-size SUV that features genuine allterrain capability. A range of new features, including the new 3.0-litre LR-TDV6 diesel engine, helped the Discovery win the What Car? Magazine award for the Best 4x4 for the seventh successive year.

The Range Rover Evoque was launched in September 2011 and has since garnered over 100 international awards. The class leading urban 4x4 comes in a range of trim levels and is the most customisable Range Rover ever produced.

The Range Rover Sport combines the performance of a sports tourer with the versatility of a Land Rover.

The Range Rover is the flagship of the brand with a unique blend of British luxury, classic design with distinctive, high-quality interiors and outstanding all-terrain ability. The 2012 Model Year Range Rover, with an all-new 4.4-litre TDV8 engine aiming to achieve a 14% reduction in CO2 emissions and a 19% improvement in fuel consumption to 7.81L/100km, has been particularly well-received in the UK, Europe and overseas.

Jaguar Land Rover achieved strong sales, during FY 2011-12 wholesale unit sales in total increased to 314,433 units from sales of 2,43,621 units in FY 2010-11, an increase of 29.1%. Jaguar volumes increased to 54,039 units during FY 2011-12 from 52,933 units in FY 2010-11, an increase of 2.1%. Land Rover volumes increased to 260,394 units from 190,628 units in FY 2010-11, an increase of 36.6%, mainly contributed by Range Rover, Range Rover Sport, Range Rover Evoque and Discovery 4 (LR4) sales. Jaguar Land Rover exported 262,637 units in FY 2011-12 compared to 185,063 units in FY 2010-11, an increase of 36.5%.

Jaguar Land Rover's performance in key geographical markets on retail basis

United States: The US economy has recovered more favourably than other mature economies since the economic downturn, with GDP growth and falling unemployment, although the position remains fragile. United States premium car segment volumes fell by 1% compared to FY 2010-11, whilst premium SUV segment volumes were up 5%. United States retail volumes for FY 2011-12 for the combined brands were 58,003 units. Jaguar retail volumes for FY 2011-12 fell by 2.6% compared to FY 2010-11, leading to a 0.3% decrease in market share. Land Rover retail volumes for FY 2011-12 increased bym 22.5% compared to FY 2010-11, increasing market share.

United Kingdom: Initial figures suggest that the UK economy has re-entered recession in the last three months. Trading conditions in the UK remain difficult, despite an upswing in the first part of the year. In the UK, both the premium car segment and premium SUV segment increased by 10% in FY 2011-12 compared to FY 2010-11. The UK retail volumes for FY 2011-12 for the combined brands were 60,022 units, Jaguar retail volumes decreased by 14.0% compared to FY 2010-11, leading to a 6% decrease in market share. Land Rover retail volumes increased by 9.8% compared to FY 2010-11, broadly maintaining market share.

Europe (excluding Russia): The European economy continues to struggle, with austerity measures in place in a number of countries. The economic situation and recent national election results, continue to create uncertainty around European zone stability, the Euro and borrowing costs. Credit continues to be difficult to obtain for customers and the outlook remains volatile. The German premium car segment volume increased by 14% and the premium SUV segment volume increased by 17% compared to FY 2010-11. European retail volumes for FY 2011-12 for the combined Jaguar Land Rover brands were 68,420 units, representing a 27.4% increase compared to FY 2010-11. Jaguar retail volume for FY 2011-12 decreased by 7.0%, and Land Rover retail volume for FY 2011-12 increased by 36.2% compared to FY 2010-11.

China: The Chinese economy has continued to grow strongly throughout FY 2011-12. GDP growth is likely to slow in future, although remain above 8%. Jaguar Land Rover has signed a JV agreement to manufacture cars in China with Chery Automobile Co. Ltd, a Chinese auto manufacturer. The China premium car segment volumes (for imports) increased by 31% in FY 2011-12 compared to FY 2010-11. The China premium SUV segment volumes (for imports) increased by 54% in FY 2011-12 as compared to FY 2010-11. The China retail volumes for FY 2011-12 for the combined brands were 50,994 units. Jaguar retail volume for FY 2011-12 increased by 147.2% compared to FY 2010-11, improving market share. Land Rover retail volume for FY 2011-12 increased by 68.7% compared to FY 2010-11, again improving market share.

Asia Pacific: The Asia Pacific region main markets are Japan, Australia and New Zealand. These regions were less affected by the economic crisis compared to western economies and are recovering more favourably, often due to increased trade with China and other growth economies. The Asia Pacific retail volumes for FY 2011-12 for the combined brands were 12,976 units. Jaguar retail volume for FY 2011-12 increased by 37.4% compared to FY 2010-11. Land Rover retail volume for FY 2011-12 increased by 25.7% compared to FY 2010-11.

Other markets:The major constituents in other markets are Russia, South Africa and Brazil, alongside the rest of Africa and South America. These economies were not as badly affected by the economic crisis as the western economies and have continued GDP growth in the last few years, partially on the back of increased commodity and oil prices. The other markets retail volumes for FY 2011-12 for the combined brands were 55,444 units, up by 39%. Jaguar retail volumes for FY 2011-12 were 5,445, up 10.4% whilst Land Rover retail volumes were 49,999, an increase of 43.3% compared to FY 2010-11.

Jaguar Land Rover's Sales & Distribution: The Company market Jaguar products in 101 markets and Land Rover products in 177 markets, through a global network of 17 national sales companies ("NSCs"), 82 importers, 63 export partners and 2,351 franchise sales dealers, of which 585 are joint Jaguar and Land Rover dealers. Sales locations for Jaguar Land Rover vehicles are operated as independent franchises. Jaguar Land Rover is represented in its key markets through NSCs as well as third party importers. Jaguar Land Rover has regional offices in certain select countries that manage customer relationships, vehicle supplies and provide marketing and sales support to their regional importer markets. The remaining importer markets are managed from the UK. The Vehicles products are also sold to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments giving a benefit of a diversified customer base which reduces its dependence on any single customer or group of customers.

Jaguar Land Rover's Competition:  JLR operates in a globally competitive environment and faces competition from established premium and other vehicle manufacturers who aspire to move into the premium performance car and premium SUV markets. Jaguar vehicles compete primarily with other European brands such as Audi, BMW and Mercedes Benz. Land Rover and Range Rover vehicles compete mainly with SUVs manufactured by Audi, BMW, Infiniti, Lexus, Mercedes Benz, Porsche and Volkswagen. The Land Rover Defender competes with vehicles manufactured by Isuzu, Nissan and Toyota.

Tata Daewoo Commercial Vehicles (TDCV): FY 2011-12 was a very challenging year for TDCV due to the slowdown of the Korean economy. Overall sales increased primarily due to significantly higher sales of Medium Commercial Vehicles (MCV) in the domestic market. The total market for Heavy Commercial Vehicles (HCV) in Korea declined in FY 2011-12 mainly due to slowdown in the economy. TDCV sold 2,549 units of HCV in FY 2011-12 compared to 2,848 units in FY 2010-11. TDCV believes to have improved its market share marginally post stabilization and full year operation of its sales and distribution company.

However, the demand for Medium Duty Trucks increased significantly during the year due to growing demand of Special Purpose Vehicle (mainly Refrigerated Van) and Military Vehicles and the shift in demand from relatively high priced HCVs (4X2 Cargo & 6X4 Cargo) to MCVs (4.5 Ton and 5 Ton). In this segment, TDCV sold 4,003 units in FY 2011-12 compared to 2,895 units in FY 2010-11.

TDCV exported 2,979 units during the year as compared to 3,005 units in previous year, in TDCV traditional market like Algeria the HCV continues to experience a slump which resulted in a marginal decline in exports. Majority of exports were made to countries like Algeria, Russia, Vietnam, South Africa and countries in the Middle East. TDCV continues to diversify its markets.

Tata Motors Finance Ltd (TMFL): The total disbursements during the year by TMFL were higher by 33% at 10,505 crores against 7,908 crores of FY 2010-11. TMFL financed 2,30,588 vehicles during the year as compared to 1,60,781 vehicles in FY 2010-11, a growth of 43%. The disbursals for Commercial Vehicles were 7,204 crores (1,20,032 units) compared to 6,041 crores (94,446 units) in FY 2010-11. The vehicle financing for Passenger vehicles grew significantly with the disbursements on the Nano and other passenger vehicles. The disbursals for Passenger vehicles for the year were at 3,301 crores (1,10,556 units) compared to 1,867 crores (66,335 units) in FY 2010-11.

In an environment of sluggish growth in the economy and rising interest costs, TMFL performance was mainly attributable to increased customer orientation. TMFL's key initiative of improving customer relations by effectively growing its 'Office of the Customer' and the deployment of its 'Risk Scored Pricing Model', contributed to performance. TMFL enhanced and significantly improved its branch network and infrastructure, and is confident that these investments will significantly improve relations with customers and dealers.

Tata Technologies (TTL): TTL, a key strategic partner in several of the information technology initiatives for the Tata Motors Group, recorded a growth of 32.4% in revenue from sale of products and services, from 493 crores in FY 2010-11 to 644 crores in FY 2011-12. During this period, revenue from services increased by 33.1% and product sales increased by 15.3% over last year, to reach figures of 563 crores and 81 crores, respectively. The services revenue comprises Engineering Automation Group [EAG], Enterprise Solutions Group [ESG] and Product Lifecycle Management [PLM]. EAG addresses the engineering and design needs of manufacturers through services for all stages of the product development and manufacturing process. ESG addresses the Information Technology needs of manufacturers including business solutions, strategic consulting, ERP implementation, systems integration, IT networking and infrastructure solutions and program management. PLM addresses the product development technology solution requirements of manufacturers including end-to-end implementation of PLM technology, best practices and PLM consulting. PLM also includes the TTL's proprietary applications iGETIT® and iCHECKIT. TTL has its interanational headquarters in Singapore, with regional headquarters in the United States (Novi, Michigan), India (Pune) and the UK (Coventry). TTL has a combined workforce of around 5,000 professionals serving clients worldwide from facilities in North America, Europe and Asia-Pacific region. TTL responds to customers' need through its subsidiary companies and through its three offshore development centers.

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