Motoring on the economic highway

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: Tata Motors Limited is India’s largest automobile company, with revenues of Rs 24,000 crore ($5.5 billion) in 2005-06. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with products in the compact, midsize car and utility vehicle segments. The company is the world’s fifth largest medium and heavy commercial vehicle manufacturer.

Over the last three years, the company has been spreading its wings globally. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea’s second largest truck-maker.

The rechristened Tata Daewoo Commercial Vehicles Company has already begun to launch new products.

In 2005, Tata Motors acquired a 2% stake in Hispano Carrocera, a Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well.

Hispano’s presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches, to manufacture and assemble fully-built buses and coaches.

Tata Motors and the Fiat Group of Italy also signed a memorandum of understanding to establish an industrial joint venture in India to manufacture passenger vehicles, engines and transmissions for the Indian and overseas markets; Tata Motors already distributes and markets Fiat branded cars in India.

In fiscal 2006, Tata Motors launched several new commercial and passenger vehicles. Among them were the Ace mini-truck, Tata Novus Tipper, a common rail diesel engine (DiCOR) powered Safari, Indigo SX, Indica V2 Turbo Diesel, and the Indica V2 Xeta.

The company’s total sales volume (including exports) for 2005-06 stood at 454,129 vehicles, a growth of 14% over 399,566 vehicles sold in 2004-05. Commercial vehicle sales in the domestic market were 214,836 units, an increase of 13%. The company’s overall market share in commercial vehicles improved to 61.3% from 59.7% from the previous year.

Passenger vehicles sales in the domestic market amounted to 189,070 units, also the highest ever with a growth of 6%. Despite intense competition, the company’s market share in passenger vehicles was maintained at 16.5%, compared to 16.9% in the previous year, a media release said.

The company exported 50,223 vehicles during the year, creating a new milestone with an impressive growth of 65%. Tata Motors reported an impressive growth of 20% in its consolidated gross revenue at Rs 27,266.41 crore in FY2006, against the previous year’s consolidated gross revenue of Rs 22,708.23 crore.