On the road less travelled

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: The year 2007 was a roller coaster ride for Tata Motors. While, on the one hand, the company geared up for the unveiling of the people’s car, the Tata Nano, its upcoming plant at Singur in West Bengal was mired in controversy. But for the Tatas, ‘a promise is a promise’, as stated by Ratan N Tata, chairman of Tata Sons and Tata Motors during the unveiling of Nano, dubbed as the cheapest car in the world, this January. The car takes the Tata Motors’ growth story one step ahead.

Established in 1945, Tata Motors has a presence across India. The company, with revenues of Rs 32,426 crore ($7.2 billion) in 2006-07, is etching a radiant future. It’s a leader in commercial vehicles and the second largest in the passenger vehicles market, with products in the compact, mid-size car and utility vehicle segments. The company is the world’s fifth largest medium and heavy commercial vehicle manufacturer and the second largest medium and heavy bus manufacturer.

In 2006-07, Tata Motors reported a consolidated profit after tax (PAT), after adjustment for share of minority interest and profit in associate companies at Rs 2,169.99 crore compared to Rs 1,728.09 crore, a growth of 26% over the previous year. The consolidated revenues (net of excise) at Rs 32,426.41 crore posted a growth of 36% over Rs 23,769.45 crore the previous year. The total sales volume (including exports) for 2006-07 at 580,280 units, the highest ever of the company, grew by 28% over 454,129 vehicles sold last year. Sales of commercial vehicles in the domestic market increased by 39% to 298,586 units; the highest ever. The company’s overall market share in commercial vehicles reached 63.9%, improving from 61.2% in 2005-06. Passenger vehicles sales in the domestic market at 228,220 units, the highest ever by the company, increased by 21% compared to last year. Exports at 53,474 units grew by 7% compared to 50,223 in 2005-06.

The company launched new vehicles and extended its products to new markets. The mini-truck, Ace, was extended across the country, and a new variant, Ace HT, launched. In passenger vehicles, launches included the long wheel base Indigo XL with two new powertrains, a new range of the Indica and the Indigo, along with a new 1.2 litre petrol engine option for the Indica.