Tata Motors: Sales up by 6.61% in June

Tata Motors has announced a 6.61 percent increase in sales in June this year. The company sold 47,245 vehicles in June, against 44,317 units in June 2007.

Tata Motors’ passenger vehicles business achieved total sales of 17,017 units in the domestic market in June, a decline of 2.30 percent over June last year. The company sold 8,560 units of the Indica and 4,747 units of the Indigo and its variants in June 2008, a decline of 27 percent and an increase of 102 percent respectively, over sales figures for June 2007.

Tata Motors also sold 3,710 units of the Sumo and Safari UVs, a growth of 11 percent compared to June last year. The company’s sales of commercial vehicles in June 2008 in the domestic market were at 26,797 units, up 25.12 percent, compared to 21,417 units in corresponding month a year ago. M/HCV sales stood at 12,845 units, a growth of 9 percent, while LCV sales were 13,952 units, up 45 percent.

Tata Motors said cumulative sales of passenger vehicles in the domestic market for the fiscal were 51,094 units, a marginal decline of 1 percent over the same period last year. Cumulative sales of commercial vehicles in the domestic market for the fiscal stood at 71,480 units, up 16 percent over last year.

Cumulative M/HCV sales stood at 35,835 units, up 10 percent over last year, while LCV sales for the fiscal were 35,645 units, a growth of 23 percent over last year.

Tata Motors committed to rolling out Nano by Durga Puja despite Rs 300 crore cost overrun

As the world waits, Tata Motors prepares the Nano for its Durga Puja launch...

Cost overruns or not, Tata Motors is committed to launching the Nano from its Singur facility, by Durga Puja this year. Tata Motors MD, Ravi Kant recently said that the company has already invested Rs 2,000 crore in the Nano project, which is about Rs 300 crore than what had earlier been estimated.

Despite the cost overrun, Tata Motors hopes to start trial production of the Nano by July or August, and remains firm on launching the car from West Bengal, overcoming all the protests etc. that have been staged there against the Rs one lakh car.

In the meanwhile, Tata Motors has been inundated with global enquiries for the Nano, with various countries wanting to set up manufacturing units for the Nano. Tata Motors has got enquiries from the US, and various parts of South America, Europe and South East Asia.

Tata Motors, Chrysler team up to offer electric Ace in the US

Chrysler will be selling the Tata Ace EV in the US market

Tata's home-grown mini-truck, the Ace, is going places. Tata Motors has tied up with US carmaker Chrysler’s Global Electric Motorcars (GEM) division to market a battery-powered, electric version of the Ace in the American market. The Ace is expected to go on sale in the US in early-2009.

Tata Motors and GEM are currently working on the Ace’s branding and pricing for the US market. The two companies expect low volumes initially, and pricing for the Ace could be in the region of US$5-6,000. Depending on how well it does in the US market, Tata and Chrysler may even get into a joint venture under which they would assemble the Ace in the US.

Battery-powered Ace prototypes are already being tested. Tata Motors will export the Ace as a completely built unit (CBU), though without the engine and gearbox. Chrysler/GEM will fit the batteries, motor and controller and sell the Ace in the US market.

Given the steadily increasing prices of petrol and diesel – a trend which may well continue in the foreseeable future – Tata will also consider launching the electric Ace in India. However, the electric version is likely to be more expensive than the conventional Ace, which retails for about Rs 2.2 lakh in the domestic market.

Trinamool Congress issues threats against Tata Nano project

Trinamool vs Tata: Will the Nano still be out by October this year? We hope so!

Even as Tata Motors is working hard towards the October launch of its Rs one lakh car, the Nano, a bunch of troublemongers at West Bengal's Trinamool Congress are trying to delay proceedings and stall the car’s launch.

At Singur, about 40km from Kolkata, work is on at full swing at Tata Motors factory, where the Nano will be made. However, Trinamool Congress, which bagged 15 out of 16 seats in the gram panchayat – the lowest rung of West Bengal’s three-tier panchayat system – in the recent rural body polls, is determined to create trouble.

‘We will see how the Tatas operate the factory. The completion of the structure for the factory will not ensure they can roll out cars. They cannot run their factory only by deploying a large number of policemen,’ pontificates Becharam Manna, convener of the Singur Krishi Jami Raksha Committee.

‘The Tatas will face administrative non-cooperation from our panchayats. We will not give the company permission to take electricity connection and it will also be stopped from dumping effluents in the river,’ says Manna, who’s obviously against the WB government having acquired 997 acres of land (across three panchayats – Gopalnagar, KGD and Beraberi) for the Tata Nano project.

The Trinamool-led Singur Save Farmland Committee has spearheaded violent agitations since mid-2006, against the Tata Nano project, claiming that they are against the acquiring of farmlands to set up industries. However, it’s widely anticipated that the WB government will deal firmly with these troublemakers, and the Nano launch will be on schedule in October.

Ratan Tata joins X Prize Foundation Board

Ratan Tata is now a member of the X Prize Foundation Board of Trustees

Tata Motors involvement with the Automotive X Prize has now deepened, even as Ratan Tata, Chairman, Tata Sons, has become a member of the X Prize Foundation's Board of Trustees. The Board and the X Prize Foundation are in charge of the Progressive Automotive X Prize.

The X Prize Foundation is an educational nonprofit organisation that attempts to solve the challenges of our time by offering incentive prizes of $10 million or more. ‘I have been an admirer of the goals set by the X Prize Foundation, which has inspired far-reaching breakthroughs in technology that ordinarily would not have been achieved. I look forward to participating in the process of breaking new frontiers in the future with the X Prize Foundation, which will have an impact on the way we live in future generations,’ said Ratan Tata.

‘I am pleased and honoured to welcome Ratan Tata to the X Prize Foundation Board of Trustees,’ said Dr Peter H. Diamandis, Chairman and CEO, X Prize Foundation. ‘He is a renowned global leader whose guidance will help us keep our vision and mission global.’

Tata Motors to pursue more acquisitions, will raise US$1 billion overseas

Tata Motors has announced that the company is looking at further acquisition opportunities and strategic alliances in India and abroad, and is seeking to raise US$1 billion in debt or equity from overseas markets.

Tata Motors, which recently completed the acquisition of Jaguar and Land Rover for US$2.3 billion, has major growth plans for expanding its product range and presence in the domestic and global markets in commercial and passenger vehicles, including strategic alliances and acquisition opportunities.

The company is seeking its shareholders' consent for raising up to one billion dollars through issue of Foreign Currency Convertible Bonds (FCCBs) or equity shares in the international market.

Besides, it has also sought shareholders' consent for raising the company's borrowing limit to Rs 20,000 crore (about US$ five billion). As part of its long term funding plans, it would raise Rs 7,200 crore through three simultaneous but separate rights issues to part-finance its US$2.3 billion buyout of Jaguar and Land Rover.

The shareholders nod has also been sought to raise US$500-600 million in the international market, which would be out of the approval sought for US$ one billion.

Tata exploring the possibility of bringing JLR cars to India

Jaguar and Land Rover cars in India? Quite probably, yes. If Mercedes-Benz, Audi and BMW can sell their cars here, why not JLR?

Now that they have bought Jaguar and Land Rover from Ford for US$2.3 billion, Tata Motors will soon be exploring the possibility of bringing the two iconic car brands to India. ‘Like Russia and China, Jaguar and Land Rover would be exploring the Indian market also. A team will be coming to India to study the market,’ says Ravi Kant, MD, Tata Motors.

Tata Motors is, however, clear that JLR will only be a niche brand in India, and the company does not expect to sell a lot of JLR cars in the country. ‘As these are high priced products, we should not be putting big numbers. The market is developing and other high priced products like Mercedes and BMW are also doing well in India,’ observed Kant.

GM's Hummer up for grabs, Tata or M&M might want to buy the brand

Not your usual, small, fuel-efficient family car, eh? But this, and a few other vehicles that are very similar to this, is all that Hummer makes...

Indian automotive companies seem to be on a big-time acquisition spree right now. After the Tata JRL deal, the next big thing may be GM’s Hummer, with its huge, cult-status MUVs and SUVs.

In the face of fuel price hikes worldwide, the market for very large utility vehicles, SUVs and American-style pick-up trucks is shrinking already. And in response to that, GM, which wants to start making smaller, more fuel efficient vehicles, has decided to sell the Hummer brand.

The merchant bankers who’ll be handling the sale of Hummer are said to have approached Tata Motors and Mahindra & Mahindra, though it remains to be seen if either company would be interested in taking things forward.

It also isn’t clear how either Tata or M&M will benefit from buying Hummer, since the worldwide market for large, fuel-guzzling UVs is expected to shrink and perhaps even disappear over the next decade…

External links:
GM: Trucks out, cars in! (on CNN Money)

Tata Motors on track for Diwali launch of the Nano

Just a few months more before the Tata Nano hits our roads...

While the world waits and watches, Tata Motors is quietly working on getting ready for the Nano launch, possibly the most momentous occasion ever for the company.

Some units of the Nano have already been brought from Pune to Singur, in order to train engineers at the Singur plant to handle the intricacies of working on the Rs one lakh car. The Singur factory is expected to be ready by the end of this month, with production of the Nano starting immediately thereafter.

While Tata engineers are working hard to make sure the Nano can be launched by October / Durga Puja, the launch is likely to be pushed back to Diwali due to a combination of factors. The Nano assembly line will be quite high-tech and will feature a high degree of automation – industrial robots will handle most of the assembly work, while engineers will be there to oversee operations.

So come Diwali, and the Indian automotive industry should be all set for one of its most memorable events yet – the launch of the first Rs one lakh car!

Tata Motors hikes car prices by up to 3%

Tata Sumo Grande prices have been hiked by about three percent

Tata Motors has announced a hike in the prices of its passenger vehicles by up to three percent, due to rise in input costs. The Indigo and Indigo Marina cars would be more expensive by 1-2 percent, while Sumo and Safari prices will go up by 2-3 percent.

Maruti, Hyundai and M&M have already announced price hikes earlier, with each carmaker saying that prices hikes have been made necessary because of steadily increasing input costs.

Tata Motors sales grow by 9% in May 2008

Tata Motors reported a total sale of 46,339 vehicles (including exports) for the month of May 2008, a growth of 9% compared to 42,558 vehicles sold in May last year. Cumulative sales for the company, at 84,488 nos, grew by 2%.

Commercial Vehicles
The company's sales of commercial vehicles in May 2008 in the domestic market were 23,682 units, a growth of 15% compared to 20,675 vehicles sold in May last year. M&HCV sales stood at 11,742 units, a growth of 12% over May 2007, while LCV sales were 11,940 units, a growth of 17% over May 2007.

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 44,683 units, a growth of 11% over last year. Cumulative M&HCV sales stood at 22,990 nos., a growth of 10% over last year, while LCV sales for the fiscal were 21,693 units, a growth of 12% over last year.

Commercial vehicles launched towards the end of 2007-08 have begun to deliver results, and are expected to facilitate stronger market position.

Passenger Vehicles
The passenger vehicle business achieved total sales of 19,234 vehicles in the domestic market in May 2008, a growth of 9% over 17,580 units sold in May 2007. The Indica reported sales of 9,686 units, a decline of 19% over May 2007. The Indica LPG was launched during the month, and has received a good response.

The Indigo family recorded sales of 4,542 units, a strong 105% growth over May 2007 on the back of good demand for the recently launched Indigo CS. The Sumo and Safari accounted for sales of 5,006 units, the highest ever for any May since inception, and a growth of 49% compared to May 2007. The Sumo recorded a 70% growth over May 2007, with sales of 3,226 units, as the Sumo Grande established itself in the market. Safari sales at 1780 units, grew by 21%.

Cumulative sales of passenger vehicles in the domestic market for the fiscal were 34,077 units, a minor decline of 1% over the same period last year. Cumulative sales of the Indica at 17,116 units, reported a decline of 25%. Cumulative sales of the Indigo family were 8,305 units, a growth of 71%. Cumulative sales of Sumo and Safari were 8,656 units, a growth of 29%. The Sumo recorded a 48% growth with sales of 5,575 units, while Safari sales at 3,081 units grew by 5%.

Exports
The company's sales from exports at 3,423 vehicles in May 2008 declined by 20% compared to 4,303 vehicles in May 2007. The cumulative sales from exports for the fiscal at 5,728 units declined by 31% over 8,340 units in the same period last year.

Tata Motors now owns Jaguar Land Rover

From left: Don Leclair, EVP and CFO, Ford Motor Co, Lewis Booth, EVP, Ford Motor Co, David Smith, CEO, Jaguar Land Rover, Ratan N. Tata, Chairman, Tata Sons and Tata Motors, Ravi Kant, MD, Tata Motors and C Ramakrishnan, CFO, Tata Motors

Tata Motors today acquired the Jaguar Land Rover businesses from Ford Motor Company for a net consideration of US $2.3 billion, as announced on March 26, in an all-cash transaction. Ford has contributed about US$600 million to the Jaguar Land Rover pension plans.

Ratan N. Tata, Chairman of Tata Sons and Tata Motors, was present at the handing over ceremony at the head quarters of Jaguar Land Rover at Gaydon in the UK along with Don Leclair, the Executive Vice President and Chief Financial Officer of Ford Motor Company, and Lewis Booth, Executive Vice President of Ford Motor Company, who has responsibility for Ford of Europe, Volvo and Jaguar Land Rover.

‘This is a momentous time for all of us at Tata Motors. Jaguar and Land Rover are two iconic British brands with worldwide growth prospects. We are looking forward to extending our full support to the Jaguar Land Rover team to realise their competitive potential. Jaguar and Land Rover will retain their distinctive identities and continue to pursue their respective business plans as before. We recognise the significant improvement in the performance of the two brands and look forward to this trend continuing in the coming years. It is our intention to work closely to support the Jaguar Land Rover team in building the success and preeminence of the two brands,’ said Ratan Tata.

Tata Motors confirmed that David Smith, the acting Chief Executive Officer of Jaguar Land Rover, would be the new CEO of the business. Smith has 25 years of experience with Jaguar Land Rover and Ford. Before recently returning to Jaguar Land Rover as its Chief Financial Officer, he was Director Finance and Business Strategy for PAG and Ford of Europe.

‘We are very pleased with the association with Tata Motors. We look forward to a sustained bright future for the company and its stakeholders,’ said David Smith.

Jaguar Land Rover has been acquired at a cost of US$ 2.3 billion on a cash free, debt-free basis. The purchase consideration includes the ownership by Jaguar and Land Rover or perpetual royalty-free licences of all necessary Intellectual Property Rights, manufacturing plants, two advanced design centres in the UK, and worldwide network of National Sales Companies.

Long term agreements have been entered into for supply of engines, stampings and other components to Jaguar Land Rover. Other areas of transition support from Ford include IT, accounting and access to test facilities. The two companies will continue to cooperate in areas such as design and development through sharing of platforms and joint development of hybrid technologies and powertrain engineering.

The Ford Motor Credit Company will continue to provide financing for Jaguar Land Rover dealers and customers for a transition period. Tata Motors is in an advanced stage of negotiations with leading auto finance providers to support the Jaguar Land Rover business in the UK, Europe and the US, and is expected to select financial services partners shortly.

Tata Motors to launch world truck in June

Tata Motors will launch their ‘world truck’ in June this year, and the launch will happen simultaneously in India and South Korea. Tata’s world truck would be fitted with a range of 200-500 horsepower engines, which will replace the current range of 100-180 horsepower trucks.

Tata Motors’ world truck has been developed in cooperation with its subsidiary, Tata Daewoo Commercial Vehicle Company Ltd, and is based on an all-new platform. The world truck move was prompted by the entry of new players on the Indian commercial vehicles scenario.

‘Automobile financing is the need of the hour and we intend to strengthen our base through this. Last year's performance has taught us, to strengthen our vehicle financing needs,’ said Ravi Kant, MD, Tata Motors. He said the auto industry in India was facing one of its toughest periods ever, and that rising inputs costs and lack of available finance were two concerns that need to be dealt with.

Tata Motors to raise Rs 72bn for JLR deal through three rights issues

Tata Motors, which is on track to complete its acquisition of Jaguar and Land Rover by the end of June this year, will raise Rs 72 billion through three rights issues to fund the deal. This will be followed by another US$500-600 million issue of securities in foreign markets. Tata Motors will spend a total of US$2.3 billion towards acquiring JLR.

In a meeting today, Tata Motors board of directors approved a rights issue of equity shares up to Rs 22 billion, 'A' equity shares carrying differential voting rights up to Rs 20 billion and rights issue of five-year 0.5 percent convertible preference shares up to Rs 30 billion. With these issues, the company's total equity capital will increase by about 30-35 percent during the current financial year.

Initially, Tata’s JLR acquisition cost will be financed by bridge loans through a syndicate of banks, and the company will later repay the banks via the newly announced capital raising schemes.

In the meanwhile, Tata Motors has posted a profit of Rs 21.67 billion for FY 2007-08, down from Rs 21.69 billion last year. The company reported a consolidated gross revenue of Rs 403.40 billion in 2007-08, a growth of 9.3 percent compared to Rs 369.22 billion in 2006-07.

Tata Motors also reports a basic earnings per share (EPS) of Rs 56.24 for its consolidated operations, as against Rs 56.43 in 2006-07. The company’s total sales volume (including exports) for 2007-08 is 585,649 units, compared to 580,280 units in 2006-07.

In the domestic market, Tata Motors commercial vehicle sales increased by 4.8 percent to 312,935 units, while passenger vehicle sales, at 218,055 units, declined by 4.5 percent.

According to a statement issued by the company, Tata Motors’ margins were under pressure during the year due to rising interest rates, constraints in availability of vehicle financing from outside sources and an unprecedented increase in input prices.

Tata Motors faces challenge with Jaguar-Land Rover cars’ emissions woes

By 2012, Jaguar and Land Rover must start making cars that are lighter and less polluting. It's going to be a big challenge for new owner Tata Motors

Jaguar and Land Rover’s new owner, Tata Motors may end up getting into a bind over the penalties faced by cars whose average carbon dioxide (CO2) emissions are significantly higher than the proposed European Commission (EC) norms, which will come into effect from 2012.

While JLR is working towards an overall reduction in its cars’ emissions over the next 2 – 3 years, heavy investments would be needed to develop biofuel, hybrid and other ‘green technologies,’ without which it may be impossible for carmakers to do business in Europe.

In an initiative aimed at reducing CO2 emissions from new cars by 19%, the EC had adopted a proposal for legislation in December last year. The proposal was aimed at reducing greenhouse gas emissions and meet Kyoto Protocol targets. The aim is to reduce average CO2 emissions from new cars in Europe from around 160gm/km to 130gm/km by 2012.

While JLR could have offset higher CO2 emission of its fleet by balancing it with earlier owner Ford’s fleet of lighter, lower emission cars, the same would not be possible for Tata Motors as it does not sell cars in Europe.

If Tata Motors can’t find a way to make JLR cars significantly lighter and less polluting by 2012, the company will face a proposed penalty (the ‘excess emissions premium’) for going over the stipulated emissions norms. A premium of 20 euros per gm/km has been proposed in 2012, rising to 35 euros in 2013, 60 euros in 2014 and 95 euros by 2015.

It’s a huge challenge for Jaguar and Land Rover, but Tata Motors spokespersons say the company had always been aware of the issue and is working towards finding various solutions.

New CEO for Jaguar, Land Rover to be announced soon

As Jaguar and Land Rover, currently being managed by CFO David Smith, prepare for the transition of ownership from Ford to Tata, the two companies are also waiting for a new CEO to be appointed. While Tata has said it would want to retain much of the current management team, some senior positions will need new people at the helm.

Regarding the new CEO for Jaguar and Land Rover, Tata may either promote someone from within the ranks, or hire a person from outside the company. An announcement is expected in the first week of June.

Tata Motors to rationalize manufacturing facilities

Tata Motors wants to create separate hubs for different categories of commercial vehicles at its various manufacturing plants throughout India

Tata Motors is currently in the process of re-organising and rationalizing its manufacturing facilities for commercial vehicles. The company wants to create separate hubs for each category of vehicle at its production units, which should help with logistics, make for more consistent production quality, and help reduce production costs.

In a move towards rationalizing its production systems, Tata Motors is expected to move the manufacturing of about 10,000 HCVs from Pune to Jamshedpur during the current fiscal. Tata’s Jamshedpur plant, supported by the company’s facility in Lucknow, will be the hub for heavy commercial vehicles, while Lucknow will be the hub for MCVs and buses. LCVs and pick-ups will be made in Pune, and Ace mini-truck will be produced in Uttarakhand.

Tata Motors will invest approximately Rs 12,000 crore over the next few years towards capacity expansion and plant modernization, at Pune and Jamshedpur. In addition to that, the company will also work towards capacity expansion at its plant in Lucknow, which was set up back in 1992, and where HCVs, MCVs and LCVs are currently being made. Tata is looking at expanding capacity from the current 100 units a day to about 300 units a day.

Autoliv IFB India may develop low-cost airbag for Tata Nano

The higher-end Tata Nano variant will have airbags, which may be developed by Autoliv

While they are an important piece of safety kit in modern cars, airbags don’t come cheap. Airbags fitted in most small cars don’t cost less than Rs 6,000 but with the Nano, that won’t work. So, Tata Motors is trying to get components manufacturer Autoliv IFB India to develop a special, low-cost airbag for the Nano.

Autoliv’s airbag for the Nano may be in the Rs 400 price range, and if the component manufacturer can really pull it off, it may be a big step forward for small car safety, as the low-cost airbag may also find its way into the Maruti 800, Alto and other small cars.

While the basic, no-frills, Rs one lakh Nano may still have to do without airbags, the higher end variant will get driver/passenger airbags at the front, an AC, and perhaps extras like power steering, radio/CD-player and alloy wheels.

The Bangalore-based Autoliv IFB India is one of the largest manufacturers of automotive airbags, with 28% market share worldwide. But, of course, Autoliv isn’t the only company working on special, low-cost components for the Nano. Other manufacturers like Bosch, Honeywell Turbo India, Koito and many others have worked on various low-cost bits for the car, including fuel-injection systems, engine components, seats, electrical systems and so on.

Nano may roll out from Pune or Pantnagar

Singur, Pune or Pantnagar - where is first Nano going to come from?

It may finally be Pune or Pantnagar, instead of Singur, from where the Tata Nano first rolls out later this year. The Nano is scheduled for launch by July/August, and given the logistics hurdles associated with Singur, Tata Motors may decide to launch from one of its other facilities. In all likelihood, the car may first be made in Ranjangaon (near Pune), in a Tata-Fiat JV facility, which is currently being used to manufacture the Fiat Palio.

Tata Nano cars meant for eastern parts of the country will still be made at the Singur plant, while Tata’s facility in Pantnagar will serve north Indian markets. Cars produced in Pune will be for western and southern parts of India. As for the launch, it’s still a race between Singur, Pantnagar and Pune – it remains to be seen which plant will produce the first road going Nano.

Regarding the Nano’s production target for the current fiscal, the number had been fixed at 100,000 units earlier, but because of various logistics-related issues, that may now be cut down to just 50,000. Once Tata Motors has streamlined its Nano operations in various parts of the country – and perhaps once it has its multiple production facilities ready – then the car’s production will again be scaled up suitably.

Tata Motors introduces the new Indica V2 Xeta LPG

The Indica V2 Xeta LPG - prices start at Rs 3.27 lakh, ex-showroom Delhi

In a bid to provide some relief to car buyers who’re scared of rising petrol prices, Tata Motors has announced the launch of the Indica V2 Xeta LPG. The new Indica runs on LPG, but can also be run on petrol in case a user runs out of gas and/or if LPG is not available.

Tata Motors claim excellent fuel efficiency for the new Indica variant, and also says that running the car on LPG reduces its CO2 emissions by 10 percent. The engine is Tata’s proven 1.2-litre MPFI unit, but with two ECUs instead of the usual one. This, of course, is to allow the car to run on both petrol and LPG.

In LPG mode, the engine makes 62bhp at 5000rpm, while in petrol mode, power is a bit higher at 65bhp@5000rpm. A torque figure of 102Nm@2600rpm means excellent tractability and pulling power at low speeds, with a full load and with the AC switched on.

The LPG Indica’s engine meets BSIII emission norms, and it can be upgraded to meet Euro IV norms. The car will be available in GLE and GLS versions, with prices ranging between Rs 3.27 lakh to Rs 3.42 lakh, ex-showroom Delhi.

External links:
Airbus also gets on the alternative fuel/biofuel bandwagon!