TATA MOTORS GROUP Corporate presentation - FY20
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TATA MOTORS GROUP Corporate presentation FY20
Contents 01 04 Tata Motors Key subsidiaries Group & partnerships 03-07 26-28 02 05 Tata Motors Responsible Limited business 08-15 29-34 03 06 Jaguar Performance Land Rover overview 16-25 35-39 Note: All figures are as of FY20 unless specified otherwise
Tata Motors Group
We are a leading global
automobile manufacturer
In a nutshell Primary business verticals
Home to
Flagship iconic brands #1CV
company of the Tata group ‘Jaguar’ and ‘Land Rover’ player in India
Commercial Vehicles (CVs) Passenger Vehicles (PVs) Luxury Vehicles
1 mn US$34.5bn Key subsidiaries
vehicles sold revenue
US$2.9bn 78,000+
EBITDA employees
Key strategic partnerships
125+
countries
04 Corporate Presentation
Part of the multi-billion salt-to-software
Tata group
Key group companies
IT
Materials
Automobile
Founded in 1868 by Retail
Jamshetji Tata
Consumer
US$113bn 700,000+
combined group revenue collective workforce strength
100+
countries across 6 continents
Financial services
US$160 bn US$20 bn
combined market cap of brand valuation, making it India’s
Energy
28 listed companies most valuable brand*
Note: All figures are as of FY19 Tourism & travel
*Source: Brand Finance Global 500 2020 report released at the World Economic Forum
05 Corporate Presentation
Providing mobility
solutions for 75 years
1945 1954 1986 1991
Incorporated as an engineering Entered the CV sector through a JV Launched the iconic and highly Entered the PV space with the
and locomotive manufacturing with Daimler-Benz of Germany successful truck, Tata LCV 407 launch of an SUV, Tata Sierra
company
2006 2005 2004 1998
Collaborated with the Brazil-based Launched India’s first mini truck, Acquired South Korean truck Launched the first fully
Marcopolo to manufacture fully built Tata Ace manufacturing unit Daewoo Commercial indigenous Indian passenger car,
buses and coaches Vehicles Company Tata Indica
2008 2009 2014 2016
Acquired iconic British carmaker Launched India’s most Launched the new intermediate and Introduced the IMPACT design
Jaguar Land Rover from Ford affordable hatchback, Tata light commercial vehicle range of philosophy through the launch
Motor Company Nano and introduced the trucks, Tata Ultra of the Tiago, aiming to create an
Jaguar Land Rover range immediate impact through the
in India exterior and a lasting impact
through the interior
2019 2018
Launched the Nexon EV with the Unveiled the Omega and Alfa
cutting-edge ZIPTRON powertrain architectures, along with the refined
technology design philosophy, IMPACT 2.0
06 Corporate PresentationWith a well-diversified
manufacturing footprint Europe
02 01
manufacturing R&D/engineering
facilities and design centre
United Kingdom 113,270
VEHICLES SOLD
05 03
manufacturing R&D/engineering
Revenue
China
facilities and design centre
110,067 US$5.7 bn 01 87,762
VEHICLES SOLD JV VEHICLE AND ENGINE VEHICLES
MANUFACTURING FACILITY SOLD
Revenue
US$5.6 bn Revenue
US$3.9 bn
North America
01 135,766
India
R&D/engineering VEHICLES
and design centre SOLD 10 02
manufacturing R&D/engineering
facilities and design centre
Revenue
451,925
US$6.9 bn VEHICLES SOLD
Revenue
US$6.2 bn
Note: Global wholesale includes
CJLR volumes for FY20
07 Corporate PresentationTata Motors Limited
‘Connecting aspirations’ through
innovative mobility solutions
Tata Motors Limited (TML) is one of India’s biggest automobile
manufacturing companies with an extensive range of integrated,
smart and e-mobility solutions in its portfolio.
VISION MISSION
By FY 2023-24, we will become We innovate mobility
the most aspirational Indian auto solutions with passion to
brand, consistently winning by enhance the quality of life.
Delivering superior
financial returns VALUES
Driving sustainable Integrity
mobility solutions Accountability
Exceeding customer Excellence
expectations, and Teamwork
Creating a highly engaged Customer centricity
workforce Speed
OFFERINGS
Commercial vehicles Passenger vehicles
Cargo transportation: Cars: Hatchbacks & sedans
Trucks, tippers, construcks, Utility vehicles
tractor trailers & other
fully built applications
Passenger transportation:
Vans, buses & coaches Electric vehicles
09 Corporate PresentationMoving the nation forward
Our wide range of CVs includes the globally benchmarked Tata Prima, Signa
and Ultra trucks in the MHCV and ILCV segments; the category-defining
Tata Ace in the SCV segment; and the Tata Intra, India’s first compact truck,
and the Tata Yodha in the Pick-up segment.
MHCV ILCV Pick-up CV passenger
Prima Ultra Yodha Winger
SCV
Signa Ace Intra Buses
MHCVs: Medium & Heavy Commercial Vehicles; ILCVs: Intermediate & Light Commercial Vehicles; SCVs: Small Commercial Vehicles
10 Corporate PresentationWinning
Pioneer in product innovation and
introduction of new segments in the
Indian market
decisively in CVs Largest CV player in India, with a strong
product portfolio of small, medium and
Enhanced customer
engagement that
heavy CV categories in the cargo segment enables greater
(from sub-1-tonne to 55-tonne GVW) customer benefits
Wide range of vans, buses and coaches in
the passenger transport segment for
intra-city and intercity applications Drive growth in Customised solutions
Pan-India network of channel partners exports and emerging (products and services)
(700+ sales and 2,500+ service opportunities like that best match
touchpoints) offering customised solutions, digital and aftersales customer requirements
including products and value-added
services Priorities on
Holistic aftermarket offering with
the radar
best-in-class service guarantees delivered
through the Sampoorna Seva programme
Augmented connectivity through
Fleet Edge, a next-gen digital solution that
delivers a wide range of connected vehicle
Employee health, Channel partner
solutions for enhanced customer benefits well‑being and capability engagement and
Continued lead across all customer-facing development profitability
metrics in net promoter score, customer
satisfaction score and dealer satisfaction
score, including strong ecosystem connect
Vehicles exported to 40+ countries across
SAARC, Africa, the Middle East and ASEAN
through a strong network of overseas
Continued focus on
channel partners financial fitness to sustain
industry cyclicity
#1 CV 57.4% 47.2%
player in India market share in MHCV market share in ILCV
11 Corporate PresentationDelivering driving experiences
that are ‘NEW FOREVER’
Our PV offerings include a whole new generation of passenger cars and utility vehicles that redefine their
respective segments with class-leading design, safety, technology and driving dynamics. The entire range is
BSVI complaint and exemplifies the IMPACT 2.0 design language.
ALTROZ Harrier
Nexon Tiago Tigor
12 Corporate PresentationWinning sustainably in PVs
Reimagining PV
through
5-star Global 4-star Global Click to Drive
World-class customer
experience
the NEW FOREVER
NCAP rating NCAP rating virtual showroom for
digital customers
range – a completely attained by Altroz in 2020 attained by Tiago and
transformed portfolio and Nexon in 2018
Net promoter
Tigor in 2020
with contemporary
products
score
a paradigm shift in
continuously increasing
focus from wholesale for past 2 years
to retail sales
an enhanced connect Strategic
with customer Initiatives
Exciting Complete digital
aspirations product range transformation
Reimagined
after sales
13 Corporate PresentationTaking the lead in an
evolving auto landscape
E-mobility is an irreversible megatrend, given the imperative to improve the pollution profile and
energy security for India. TML is looking at the electric vehicle business as a strategic opportunity
to establish itself as a strong player in the new and evolving EV industry.
Nexon EV Tigor EV Tata 4/12m Tata Ultra Electric
High-efficiency AC motor 213 km range Low floor-entry electric bus India’s first-ever intermediate
300+ km capacity lithium-ion battery 2-hour fast charging First all-electric drivetrain commercial electric truck
0-100 kmph in 9.9 seconds State-of-the-art solution for urban Best fit for city transportation
transport needs requirements
1-hour fast charging
EVs: Electric Vehicles
14 Corporate PresentationWinning proactively in EVs
TML is closely working with other Tata group companies to
create an e-mobility ecosystem, Tata UniEVerse. The aim is to
Charging
leverage their collective strengths and experience to create a
viable environment to drive the adoption of EVs in India.
Digital retail
Strategy Market leader Market leader Localisation
Focus on fleet, government and
personal segments in fleet (46%) and in personal segment (43%)
government (53%) segments
Contemporary and accessible EVs
Low-voltage EV for fleet use
High-voltage EV for personal use
Conversion of existing models to
optimise investments
Build a strong EV ecosystem with
Tata group companies
Battery cell
manufacturing and
recycling Financing
15 Corporate PresentationJaguar Land Rover overview
Envisioning a world of sustainable,
smart and safe mobility
Jaguar Land Rover (JLR) is a global automotive manufacturer and leading technology company,
S T R AT E G I C R E P O R T
Strategy
11
proudly built around two iconic British car brands, Jaguar and Land Rover, and driven by a desire
to deliver class-leading vehicles, providing experiences people love, for life.
PURPOSE
BUSINESS DESTINATION ZERO
JLR’s vision is a world of sustainable, smart mobility –
Destination Zero – enhancing the quality of everyone’s life with
zero emissions, zero accidents and zero congestion through
relentless innovation. Our ambition is to make our societies
safer and healthier, and our environments cleaner through
relentless innovation. Adapting our products and services to
the rapidly-changing world around us.
PASSIONS
VALUES
17 Corporate PresentationMastering the art of performance
Sports LIFESTYLE LUXURY
I-PACE XJ
F-TYPE
F-PACE REFRESHED XE + XEL
E-PACE XF + XFL
18 Corporate PresentationInnovation and craftsmanship
that span decades
1935 1948 1961 1990
The first ever Jaguar car to be To showcase the new XK DOHC Jaguar E-Type is Jaguar XJ220 becomes the
produced ‘six’ engine, the Jaguar XK120 is introduced world’s fastest production car
launched
2015 2013 2008 1996
The first Jaguar SUV, the F-Pace Jaguar F-Type is revealed Jaguar Land Rover is founded as Jaguar XK is launched
is announced Tata Motors completes acquisition
of the brands
2018 2019
The world’s first all-electric SUV, All-new Jaguar XJ confirmed
Jaguar I-Pace is revealed as electric-only flagship
saloon
19 Corporate PresentationBlending capability with
composure, no matter the terrain
REFINEMENT VERSATILITY durability
RANGE ROVER RANGE ROVER VELAR DISCOVERY LAND ROVER DEFENDER
RANGE ROVER SPORT RANGE ROVER EVOQUE DISCOVERY SPORT
20 Corporate PresentationTracing the story of the world’s
favourite 4x4
1948 1958 1970 1989
The debut of Land Rover Going strong with Land Rover Birth of British Rover The all-new Discovery
Series II Rover is launched
2017 2011 2008 2005
Range Rover Velar is Range Rover Evoque brings the Jaguar Land Rover is founded as Range Rover Sport is
launched LRX concept car to life Tata Motors completes acquisition revealed
of the brands
2019
The all-new Land Rover
Defender makes its global debut
21 Corporate PresentationAchieving significant growth
since the Tata acquisition
JLR has delivered solid performance over the long
term, through exciting products, reliable profits and
future-focused investments.
Between FY11 and FY20:
Generated PBT of over £12 bn (US$15 bn) (before exceptional items)
Generated ~£28 bn (US$35 bn) of operating cash flow before purchase of PPE
and intangibles of ~£25 bn (US$31 bn) in new products, technology, capacity
and infrastructure
20+ new launches/model refreshes in the last 10 years
Revenue (£ billion) Retail volume (’000)
30 700
25 600
500
20
400
15
300
10
200
3.5x 2.4x
5 100
0 0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
22 Corporate PresentationEnhancing the quality of life through
relentless innovation
SOTA as a standard Next-gen in-car experience Future of urban travel Zero accidents
Every new JLR vehicle now has SOTA Pivi Pro infotainment system is JLR's JLR unveiled the bold new concept Equipped with a full suite of ADAS
as a standard, offering all customers most advanced in-car technology to vehicle, Project Vector, as part functionality, JLR's latest vehicles
the ability to remotely receive future date, keeping customers connected, of its Destination Zero mission; include the award-winning Clear Sight
software updates to their vehicle updated and entertained at all times it is envisioned as an advanced, Ground View and Rear View Mirror
anywhere in the world connected, autonomy-ready technologies and other pioneering
electric vehicle for both public and safety features
private mobility
23 Corporate PresentationWidening the portfolio of
electrified products
1 BEV 5 PHEVs 5 MHEVs
Range Rover Range Rover Sport Range Rover Range Rover Sport
Range Rover Evoque Discovery Sport Range Rover Evoque Discovery Sport
Defender (unveiled in Defender
Jaguar I-PACE
September 2020)
Electrification across the range
All new Jaguar and Land Rover vehicle models will offer the option of electrification.
BEV: Battery EV; PHEV: Plug-in Hybrid EV; 1 BEV, 8 PHEV and 11 MHEV models will be available by end of FY21.
MHEV: Mild Hybrid EV
24 Corporate PresentationPriorities on the radar
Launches MLA China Projects Charge & Project Accelerate
Charge+
JLR will continue to update JLR’s family of Ingenium As a part of JLR’s Cost and cash savings Accelerate aims to address the
its existing model range with petrol and diesel engines are Transformation strategy, programmes focusing on fundamental challenges that
industry-leading design and based on a modular, flexible China will continue to stabilising cash position, will ensure JLR’s sustainable
technology, including the and scalable all-aluminium be a key focus area and right‑sizing structural costs and successful future. This
latest infotainment systems design with a choice of 3-, 4- actions are underway to and improve variable profits. includes on-time, quality
and full-battery electric and and 6-cylinder engines that improve the volumes and The FY21 target of cumulative programmes; delivery of
hybrid propulsion. also support mild and plugin profitability in China. cost and cash savings through competitive material cost; and
hybrid propulsion technology. these projects has been set at enhanced sales performance.
JLR will begin the roll-out of £6 billion.
its next-gen MLA across its
product portfolio in FY21.
MLA: Modular Longitudinal Architecture
25 Corporate PresentationKey subsidiaries & partnerships
Operating through a robust
network of subsidiaries
TMF reaches out to customers to Tata Daewoo is one of South Tata Technologies is a global leader
help them realise their dream of Korea’s most reputed truck makers. in engineering services outsourcing
owning a Tata vehicle easily. TMF It exports its vehicles to more than and product development
also provides finance for used Tata 60 countries. TDCV manufactures IT services to the global
vehicles. It is actively engaged in both heavy (8 tonne and above) manufacturing industry; enabling
corporate lending wherein it provides and medium (4 to 8 tonne vehicles) ambitious manufacturing companies
both short-term and long-term commercial vehicles and has to design and build better products.
financing to dealers and suppliers a product portfolio of various
of TML. types of trucks for flat beds, Major service segments
dumpers, mixers, tractors, arm-roll Engineering, research and
270+ trucks, refrigeration trucks and
special‑purpose trucks.
development
branches pan India Product lifecycle management
2nd largest Connected enterprise IT
US$4.9 bn heavy commercial
AUM manufacturer in
South Korea
30%
market share
27 Corporate PresentationAnd strategic alliances that enable us to move further ahead A 50:50 JV between Chery Automobile Co Ltd. and A collaboration between JLR and BMW Group A 50:50 JV between TML and Cummins Inc., JLR. Chery Jaguar Land Rover has a world-class to develop next generation Electric Drive Units USA, for the design and manufacture of manufacturing and an engine plant; CJLR has in a move that will support the advancement of diesel engines released five car models in China electrification technologies JLR’s long-term strategic partnership AJV between TML and Fiat Group Automobiles A 51:49 JV between TML and Marcopolo S.A., to develop the world’s first premium to manufacture passenger cars, engines and Brazil, for manufacturing buses in India self-driving EV for Waymo’s driverless transmissions for the domestic market transportation service 28 Corporate Presentation
Responsible business
Conserving natural resources for a
sustainable future
FY20 highlights
Energy efficiency
RE100 100%
Waste TML is a signatory to this global REGO-backed zero carbon
management and renewable power collaboration of businesses electricity for all core UK
committed to 100% renewable operations of JLR
electricity
Carbon neutral 11 JLR sites
Focus certification for JLR for the certified with ISO 14001
areas GHG emissions
second consecutive year by the
Carbon Trust
Environment Management
Standard
Water
management management
3,760.1 tonnes up-to 75%
of material saved due to recycling by recycled content in
Tata Prolife JLR’s aluminium alloy
Circular economy
Tata Prolife remanufactures auto components that have reached the end of their useful life;
REGO: Renewable Energy Guarantee of Origin
30 Corporate PresentationCreating opportunities for
everyone to prosper
FY20 highlights
Media Employees 358 All Tier-1 ZERO harm
suppliers covered under JLR suppliers hold an safety culture across
TML’s Sustainable Supply environmental management operations
Chain Initiative & 67 dealers system certified to ISO 14001
assessed under TML’s Dealers or equivalent
Academic Sustainability Initiative
& research Customers
institutions
Stakeholder 2nd highest Learning £20 mn
universe in the JD Power India
Customer Service Index
Advisory Council invested every year in
the Jaguar Land Rover
designs, implements
Study 2019 for third year in and reviews the learning Academy
Regulators/ Suppliers a row agenda for employees
Governments & dealers
6.1% 16.5% The Valuable 500
Communities Investors & gender diversity at TML gender diversity at JLR JLR is part of this global
(pertains to permanent, movement dedicated to ensuring
shareholders fixed-term and trainee disability inclusion in business
employees only)
31 Corporate PresentationStrengthening our social
licence to operate
FY20 highlights
Employee Health
volunteering 763,600
lives impacted through TML’s
CSR initiatives
“In a free enterprise, the
2,111,015
lives impacted through JLR’s community is not just another
Affirmative Education
action
CSR initiatives
stakeholder in business, but is
CSR impact in fact the very purpose of its
areas 37%
beneficiaries of CSR initiatives existence.”
are from socially backward
Rural Employability &
groups - Jamsetji Tata
development skill development
3-year
Partnership with IFRC to support
disaster preparedness and response
Environment projects around the world
awareness
IFRC: International Federation of Red Cross and Red Crescent Societies
32 Corporate PresentationFuelled by good governance Board of Directors Mr N Chandrasekaran Mr O P Bhatt Ms Hanne Sorensen Non-executive Director and Chairman Non-executive, Independent Director Non-executive, Independent Director Ms Vedika Bhandarkar Dr Ralf Speth Mr Guenter Butschek Non-executive, Independent Director Non-executive Director CEO and Managing Director Please visit tatamotors.com/about-us/leadership/ for detailed profiles of TML’s leadership. 33 Corporate Presentation
Experience behind the wheel Executive Committee Mr Guenter Butshek Mr P B Balaji Mr Girish Wagh Mr Shailesh Chandra CEO and Managing Director Group Chief Financial Officer President – CV business unit President - PV (& EV) business unit Mr Rajendra Petkar Mr Thomas Flack Mr Ravindra Kumar GP President & Chief Technology Officer President & Chief Purchasing officer President & Chief Human Resources Officer Please visit tatamotors.com/about-us/leadership/ for detailed profiles of TML’s leadership. 34 Corporate Presentation
Performance overview
Recognised for outstanding products
Tata Motors Limited Jaguar Land Rover
Ranked 31st out of 2,000 and 5th among global automobile manufacturers in Received 200+ awards from leading international motoring writers,
Forbes World’s Best Regarded Companies 2019 magazines and opinion leaders, reflecting the strength of its model line-up,
design and engineering capabilities
CV business received several awards during the year at platforms like
Apollo CV, ET Now, CII Award for Customer Obsession and Jaguar I-PACE received 2019 World Green Car of the Year, 2019 World Car
CII Maturity Model Design of the Year and 2019 World Car of the Year at the World Car of the
Year Awards, and the Best SUV Award at Golden Steering Wheel Awards
PV business received a strong response and accolades, with 13 awards
during the year Land Rover Defender won the CDN Production Car Design of the Year 2019
Tata Harrier received several awards and accolades, including Most Awaited
Car of the Year award, Car of the Year award and Best Design Award at
various forums
Tata Sierra Concept EV received Best Design award at Car & Bike – Auto
Expo Excellence Awards
36 Corporate PresentationTracking performance over the years
Tata Motors Limited – Consolidated
Wholesale volume (units) Revenues (US$ mn)
1,305,020
39,924
1,282,321
38,501
36,113
1,155,253
35,681
34,520
1,066,254
1,006,173
FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20
EBITDA margin (%) EBIT margin (%) Performance in the last 2 years
impacted by several external
challenges, including muted global
9.3
15.3
demand, regulatory transitions
(emission, safety and axle load), pricing
pressures and geo-political conflicts
11.1
10.7
5.0
8.9
Major cost and cash savings initiatives
4.1
1.2
8.4
underway at both TML and JLR
FY16 FY17 FY18 FY19 FY20
-0.2
FY16 FY17 FY18 FY19 FY20
37 Corporate PresentationTracking performance over the years
Tata Motors Limited – Standalone (incl. joint operations)
Wholesale volume (units) Revenues (US$ mn) EBITDA margin (%)
732,428
9,151
8.2
7.8
636,968
7,606
543,656
5.9
511,931
475,207
5,875
5,808
5,672
3.4
0.6
FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20
EBIT margin (%) Free cash flow (US$ mn) CV industry impacted by structural and cyclical
headwinds in the last couple of years
TML embarked upon the ‘Turnaround’ journey and
204
177
delivered
3.8
0.5
Positive FCF in 2 consecutive years
2.4
FY16 FY17 FY18 FY19 FY20
FY16 FY17 FY18 FY19 FY20
Industry-leading EBITDA of 11% for CV and
EBITDA breakeven for PV in FY19
-3.4
-72
FY20 was a transition year to BSVI and performance
was impacted by other market externalities due to a
-270
-789
-7.1
slowing economy
38 Corporate PresentationTracking performance over the years
Jaguar Land Rover
Retail volume (units) Revenues (US$ mn) EBITDA margin (%)
32,026
14.1
614,309
604,009
578,915
30,074
30,229
28,546
27,679
12.1
521,571
508,659
10.8
8.7
8.2
FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20
EBIT margin (%) Free cash flow (US$ mn) The last few years were challenging for JLR.
Performance was adversely impacted by market
headwinds, such as muted global demand, increasing
geo-political tensions and diesel uncertainty, along
8.0
801
with the internal factors
175
5.9
In the face of these challenges, the business launched
FY16 FY17 FY18 FY19 FY20
comprehensive programmes to improve operational
3.8
-872 and financial performance. These include: Project
Charge and Charge+, which focused on reducing costs
-1,298
FY16 FY17 FY18 FY19 FY20
-1,571
and Project Accelerate, which focused on addressing
-0.1
the structural challenges on product launches
-0.7
39 Corporate PresentationThank you For more information, visit tatamotors.com and email us at ir_tml@tatamotors.com
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