1.0 Background of the company

1.1 Tata Motors Group

 

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 Jaguar is more focus on producing and selling 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 such as 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).