1.0 Background of the company 1.1 Tata

1.0 Background of the
company

1.1 Tata Motors Group

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Figure
1: Logo of Tata Motors (Glass, Lewis & Co, 2016)

Founded
in 1945, the Tata Motors is the India’s largest automobile company, and was
formerly known as TELCO (Tata Engineering and Locomotive Company). It has grown
rapidly since it was founded by Jamsetji Tata in 1868 (Tata Motors, 2018). The Tata Motors are more focus on producing
and selling the commercial vehicles, passenger vehicles, midsize car and also
utility vehicle segments to the customers.

The
Tata Motors vision is “As a High-Performance Organisation, we are, by FY 2019,
among the top 3 in Global CV and Domestic PV, achieving sustainable financial
performance and delivering exciting innovations” and the mission is “We
innovate, with passion, mobility solutions to enhance quality of life”.
Moreover, the values of Tata Motors are integrity, teamwork, accountability,
customer focus, excellence and speed (Tata Motors, 2016).

In
addition, the Tata Motors also offered its commercial vehicles and passenger
vehicles in others country such as in Europe, Asia Pacific, Latin America,
Africa, the Middle East, Australia and Russia (refer to figure 2). In 1948, the Tata Motors introduced the first
steam roller in collaboration with Marshall Sons (UK), and in 1954 TELCO
started to manufacture medium commercial vehicles in a joint venture with
Daimler-Benz. After that, in 1971, the Tata Motors was ranked as the first
Indian carmaker company that able to produce direct injection engines
independently. The first India automobile manufacturer that independently
developed and designed a light commercial vehicle is the Tata 407 (Schuster & Holtbrugge, 2011).

Furthermore,
the company also has a leading market position in commercial vehicles in India
and continuously increases its market share in different passenger car
segments. In 2009-10, the Tata Motors domestic sales of heavy vehicle and buses
increased by 36.5% to a total of 155, 161. The sales of light commercial
vehicles grew by 44.2 % to 218, 681, and sales of passenger cars grew by 25.3%
to 260, 020 (Schuster & Holtbrugge, 2011). After a few years, the
Tata Motors commercial vehicles domestic sales was increased at 40, 447 units,
a growth of 62% compared to 24,998 units in December 2016. The Tata Motors passenger
vehicles sales performance was also increased at 14, 180 units, which growth of
31% over last year in December 2016 (Tata Motors, 2018).

Figure
2: Tata Motors Worldwide (Tata Motors, 2018)

 

 

 

1.2 Jaguar Land Rover

 

Figure
3: Logo of Jaguar Land Rover (Sur, 2016)

Jaguar
Land Rover (JLR) is the Britain’s largest automotive manufacturer which
designs, engineer and manufacture in the UK. The two iconic brands of Jaguar
Land Rover include Jaguar, with a range of luxury saloons, sports cars and
luxury performance SUVs and Land Rover, which encompasses a portfolio of
premium all-terrain vehicle (Jaguar Land Rover, 2014).

In
addition, the Jaguar vehicles comprise the F-TYPE Coupe and Convertible
two-seater sports cars, XJ saloons, the XF and XF Sportbrake, and the new XE
sports saloons. The Land Rover’s range of products comprises the Range Rover,
Range Rover Evoque, Range Rover Sport, the Land Rover Discovery, Discovery
Sport and Defender (Jaguar Land Rover, 2015)

The
Jaguar Land Rover vision is “We are entering the largest, fastest industrial
revolution ever, driven by decarbonisation, air quality, digitization, connectivity,
automation and technology. Against this backdrop we see endless exciting
opportunities to create a world in which we will live safer, better, more
connected and mobile lives”(Jaguar Land Rover, 2017). Moreover, the company
mission is “We want to deliver more great products, faster that we have ever
done before, we want to be leaders in the field of environmental innovation and
we want to be sure our customers always come first ” (Jaguar Land Lover, 2018).

 

Figure
4: Global Footprint Fiscal 2016/17 (Jaguar Land Rover, 2017)

Based
on figure 4, the Jaguar Land Rover has four principles automotive manufacturing
facilities in United Kingdom. There are Solihull, Castle Bromwich, Halewood and
the Engine Manufacturing Centre at Wolverhampton. It also has two development
facilities in the United Kingdom at Gaydon and Whitley. Moreover, the Jaguar
Land Rover also owns a joint venture manufacturing plant under its China Joint
Venture, in Changshu, near Shanghai. Besides that, the company also has
vehicles manufacturing at Nitra in Slovakia, Rio de Janelro in Brazil, Graz in
Australia and Pune, in India (Jaguar Land Rover, 2017).

 In Fiscal 2013/14, the Jaguar Land Rover has grown
with revenues of almost 19.4 billion (up 23%) on retail sales of 434, 311 units
(up 16%), EBITDA of 3.4 billion (up 45%) and profit before tax (PBT) of 2.5
billion (up 49%) (Jaguar Land Rover, 2014). After a few year,
the Jaguar Land Rover  revenues was
increased at 24.3 billion in Fiscal 2016/17, up from the 22.3 billion in Fiscal
2015/16, on retail sales of 604, 009 units (up 16%). The EBITDA of 3.0 billion
(12.1%) in Fiscal 2016/17, down slightly from the EBITDA of 3.1 billion (14.1 %)
in the previous fiscal year and profit before tax (PBT) of 1.3 billion in
Fiscal 2016/17 (up 21.0%) compared to 15.7 per cent last year (Jaguar Land Rover, 2017).