Amir Faisal

Industry Analysis
Of
Automobiles
Industry

Prepared By: Amir Faisal

MBA (3rd Semester)
Krupanidhi Business School

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Index
Ch Topic Page
1 Indian Automobile Industry 3
A. Overview of Automobile Industry 3
A. 2-Wheelers 5
B. Passanger Car 7
C. 3-wheelers 10
D. Utility Vehical 12
E. Commercial Vehical 14
2 Scope of Indian Automobile Sectore 17
A. Investment in Auto Sectore 17
B. Growth In Sectore 17
C. Export Trends 18
D. New Launces 18
E. Employment in Sectore 18
3 Top Player in Indian Automobile Industry 20
4 TATA Motors 21
A. Profile 22
B. Products 24
C. Milestone 25
D. Balane Sheet 31
E. Profit and Loss Account 32
5 Honda Siel Cars India Ltd 34
A. Profile 35
B. Manufacturing Facility 35
C. Vehical 36
D. Awards 36
E. Balance Sheet 37
F. Income Statement 39

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Indian Automobile
Industry

Over a period of more than two decades the Indian Automobile industry has been
driving its own growth through phases. The entry of Suzuki Corporation in Indian
passenger car manufacturing is often pointed as the first sign of India turning to a market
economy. Since then the automobile sector witnessed rapid growth year after year. By
late-90's the industry reached self reliance in engine and component manufacturing from
the status of large scale importer.

With comparatively higher rate of economic growth rate index against that of
great global powers, India has become a hub of domestic and exports business. The
automobile sector has been contributing its share to the shining economic performance of
India in the recent years.

With the Indian middle class earning higher per capita income, more people are
ready to own private vehicles including cars and two-wheelers. Product movements and
manned services have boosted in the sales of medium and sized commercial vehicles for
passenger and goods transport. Side by side with fresh vehicle sales growth, the
automotive components sector has witnessed big growth. The domestic auto components
consumption has crossed rupees 9000 crores and an export of one half size of this figure.

A. Overview of Automobile Industry

The Indian automobile industry is going through a technological change where
each firm is engaged in changing its processes and technologies to sustain the
competitive advantage and provide customers with the optimized products and services.
Starting from the two wheelers, trucks, and tractors to the multi utility vehicles,

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commercial vehicles and the luxury vehicles, the Indian automobile industry has achieved
tremendous amount of success in the recent years.

As per Society of Indian Automobile Manufacturers (SIAM) the market share of

each segment of the industry is as follows:.

The market shares of the segments of the automobile industry

The automobile industry had a growth of 15.4 % during April-January 2007, with
the average annual growth of 10-15% over the last decade or so. With the incremental
investment of $35-40 billion, the growth is expected to double in the next 10 years.

Consistent growth and dedication have made the Indian automobile industry the
second- largest tractor and two-wheeler manufacturer in the world. It is also the fifth-
largest commercial vehicle manufacturer in the world. The Indian automobile market is
among the largest in Asia.

The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd,
Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have
been dominating the vehicle industry. A few of the foreign players like Toyota Kirloskar
Motor Ltd., Skoda India Private Ltd., Honda Siel Cars India Ltd. have also entered the
market and have catered to the customers’ needs to a large extent.

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Not only the Indian companies but also the international car manufacturing
companies are focusing on compact cars to be delivered in the Indian market at a much
smaller price. Moreover, the automobile companies are coming up with financial
schemes such as easy EMI repayment systems to boost sales.

There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to
share the technological advancements. Besides, there are many new projects coming up
in the automobile industry leading to the growth of the sector.

The Government of India has liberalized the foreign exchange and equity
regulations and has also reduced the tariff on imports, contributing significantly to the
growth of the sector. Having firmly established its presence in the domestic markets, the
Indian automobile sector is now penetrating the international arena. Vehicle exports from
India are at their highest levels. The leaders of the Indian automobile sector, such as Tata
Motors, Maruti and Mahindra and Mahindra are leading the exports to Europe, Middle
East and African and Asian markets.

The Ministry of Heavy Industries has released the Automotive Plan 2006-2016,
with the motive of making India the most popular manufacturing hub for automobiles and
its components in Asia. The plan focuses on the removal of all the bottlenecks that are
inhibiting its growth in the domestic as well as international arena.

2-Wheelers
Indian automobile industry witnessed a growth of 23.37% in 2-wheeler segment.
India is the second-largest 2-wheeler manufacturers in the world and also the largest
motorcycle manufacturer in the World. Indian 2-wheeler segment includes a range of
vehicles such as scooters- geared and ungeared, motorcycles and mopeds.

In India there are 7 scooter manufacturers, 9 motorcycle manufacturers, 3 moped

manufacturers. Bajaj Auto, Hero Honda, TVS, etc are the leading manufacturers. They
have also dominated the global arena after Piaggio. Production in Indian automobile
industry During cfinancial year 2005-06, Indian 2-wheeler production showed a growth
of 16.40% over the

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preceding year. 2-wheeler segment have been showing an upward production

trend. At present, there are more than 7.6 million 2-wheeler, manufactured in Indian
automobile sector.

Sales in Indian automobile industry- Domestic and Exports

During financial year 2005-06, 2-wheeler sales in Indian market showed a growth
of 13.63%, with an increase in exports by more than 40%. In the same period, cumulative
sales of 2-wheelers in Indian market amounted to 7.05 millions, with 0.5 million units
exported by Indian manufacturers.

Production trend of 2-wheelers in Indian automobile industry

Sales trend of 2-wheelers in Indian market

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Export trend of 2-wheelers

* The figures are based on SIAM analysis and individual company's reports

Passenger Cars
India is the fourth-largest car market in Asia. During financial year 2005-06,
Indian passenger car segment grew at 19% with the sale of 1.3 million passenger
vehicles.

Passenger cars come in great variety, starting from 2-seater electric car REVA to
5-seater compact cars like Zen, Santro, Indica, etc. They come in all ranges- economical
and luxurious. Tata Motors, Maruti Udyog Limited, Mahindra & Mahindra, etc are the
leading Indian manufacturers in passenger cars segment, whereas many foreign players
such as Hyundai, Honda, Fiat, Ford, Toyota, etc are also serving the segment.

Production of passenger cars in Indian automobile industry

Production of passenger cars in Indian automobile industry witnessed an overall

growth of more than 8%. The major players are in the process of expanding their

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capacity. Some companies are also in the process of launching new compact cars in
Indian markets.

Production trend of passenger cars in Indian automobile segment

Sales in the Indian automobile industry- Domestic and Exports

During financial year 2005-06, passenger vehicle sales showed a growth of 7.55%
over the preceding year. Passenger vehicle exports increased by 5.93% in the same
period.
Sales trend of passenger cars in Indian market

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Export trend of Indian passenger car manufacturers

Passenger Car Sales- Domestic & Exports

Tata Motors, Maruti Udyog Limited, Hyundai, Honda, Fiat, Ford, Toyota,
Mahindra & Mahindra, etc are the leaders in Indian passenger car segment delivering
compact and luxurious cars. Some of the domestic as well as the global players are in the
process of delivering more compact cars in Indian markets.

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During financial year 2005-06, sales of passenger cars in Indian market showed a
growth of 7.55% with an increase of 5.93% in exports by Indian passenger car
manufacturers.

Market shares of major players in Indian passenger car segment

Contribution to exports by major Indian players in passenger car segment

The figures are based on SIAM analysis and individual company's reports.

3-Wheelers

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Indian automobile industry witnessed a growth of 16.04% in 3-wheeler segment.

Indian 3-wheeler segment includes a range of vehicles such as auto rickshaws, mini
tempos, etc.

In India, there are 6 local and multinational companies making 3-wheelers. Bajaj
Auto is the leader in 3-wheeler manufacturing. It has also dominated the global arena
after Piaggio.

Production

During financial year 2005-06, 3-wheeler production showed a growth of 16.02%

over the preceding year. 3-wheelers have been showing an upward production trend. At
present, there are more than 4.34 lakhs 3-wheelers manufactured in Indian automobile
sector.

Production trend of 3-wheelers in Indian automobile industry

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Sales in Indian automobile industry- Domestic and Exports

During financial year 2005-06, 3-wheeler sales in Indian market showed a growth
of 17%, with an increase in exports by more than 40%.

Sales trend of 3-wheelers in Indian market

Export trend of Indian 3-wheelers

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Utility Vehicles
Indian automobile industry witnessed a growth of 12.85% in utility vehicle (UV)
segment. Indian UV segment includes a range of vehicles such as Safari, Sumo, Qualis,
Tavera, etc. There are Multi Utility Vehicles, Sport Utility Vehicles, etc., depending on
nature of their use. Tata Motors, Mahindra & Mahindra, Swaraj Mazda, Maruti Udyog
Ltd, etc are the leading Indian manufacturers of UVs. They have now entered the global
arena as well.

Production of UVs in India

The production of UVs in Indian automobile industry witnessed an overall growth

of more than 7%. The major players are in the process of expanding their capacity. Some
of the manufacturers are also in the process of launching compact UVs

Production trend of UVs in Indian automobile sector

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Sales in the Indian automobile industry- Domestic and Exports

During financial year 2005-06, UV sales showed a growth of 10.33% over the
preceding year, whereas exports by Indian manufacturers had a decline of 0.42%

Sales trend of UVs in Indian automobile sector

Exports trend of Indian UVs in UV segment is as follows

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The figures are based on SIAM analysis and individual company's reports

Commercial Vehicles
India is the fourth-largest commercial vehicle market in the world, and it is also
the fifth-largest manufacturer of commercial vehicles. During financial year 2005-06,
commercial vehicle segment grew at 36.96%. Medium and Heavy Commercial Vehicles
(MHCVs) showed a growth of 39.92% and Light Commercial Vehicles (LCVs) showed a
growth of 32.8%.

Commercial vehicles can be categorized into Light Commercial Vehicles (LCVs),

Medium Commercial Vehicles (MCVs) and Heavy Commercial Vehicles (HCVs)
according to the maximum load they can carry. LCVs gross vehicle weight limit is 7.5
tonne, whereas MCVs' is 25 tonne and HCVs' is 49 tonne.

Production of commercial vehicles in the Indian automobile industry

Production of commercial vehicles in Indian automobile industry witnessed an

overall growth of more than 10%. The major players are in the process of expanding their
capacities and acquiring advanced technologies for higher quality production.

Total production of commercial vehicles (in units) of major players

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Sales in the Indian automobile industry- Domestic and Exports

During financial year 2005-06, commercial vehicle sales in Indian automobile

industry showed a growth of 10.13%. The exports of commercial vehicles witnessed a
growth of more than 35%.
Sales and exports (in units) of commercial vehicles for FY 2005-06

* The figures are based on SIAM analysis and individual company's reports.

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2. Scope of Indian Automobile Sector

The Indian automobile industry is going through a phase of rapid change and high
growth. With new projects coming up on a regular basis, the industry is undergoing
technological change. The major players are expanding their plants and focusing on mass
customization, mass production, etc.

INVESTMENT IN AUTO SECTOR

Nearly every automobile company is investing at a higher rate than ever before to
achieve a high growth trajectory. The overall investment in the sector has been increasing
quite rapidly. It is expected that by the end of 2010 Indian automobile sector will be
investing a huge amount as Rs. 30,000 crores.

For example, Maruti Udyog has plans of investing Rs. 6,500 crores; the Tata
Motors is coming up with more investment of Rs. 2,000 crores in its compact car project.
Not only the Indian companies but also foreign players like Hyundai are coming up with
the investment of more than Rs. 3,800 crores in India.

GROWTH IN THE SECTOR

At present the industry is enjoying a growth rate of 14-17% per annum, with
domestic sales growth at 12.8%. The growth rate is predicted to double by 2015.

As it is seen, the total sales of passenger vehicles - cars, utility vehicles and multi-
utility vehicles - in the year 2005 reached the mark of 1.06 million. The current growth
rate indicates that by 2012 India will overtake Germany and Japan in sales volumes.

Financing schemes have become an important factor in the growth of automobile

sales. More and more financial schemes are coming up with easy installment plans to lure
the customers.

Apart from domestic production, the industry is consistently focusing on the

automobile exports. The auto component segment is contributing a lot in the export
arena. The liberalized policies of the government are now making the companies go for
more and more exports.

The automobile exports are increasing year by year. According to the Society of
Indian Automobile Manufactures (SIAM) automobile exports in the last five years are as
follows:

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Export trend over the last five years

NEW LAUNCHES
The Indian automobile sector is experiencing changes in every arena. Changes in
the looks of the vehicles are taking place; the vehicles are being made more user-friendly.
Each and every firm is competing to give the customers more customized vehicles with
respect to speed, mileage, and maintenance. At present there are many new models
entering the Indian market. To name a few, Suzuki Heat 125 and Suzuki Zeus 125X are
the two bikes in the motorcycle segment; Kinetic Blaze and Honda DIO in the scooter
segment; Maruti's Zen Estillo in the car segment, so on and so forth.

EMPLOYMENT IN THE SECTOR

Investment is leading to the employment growth in the sector. With the
emergence of new projects and introduction of technological advancements, the focus is
more on the skilled and experienced human resource. The companies are looking for
skilled and hard working people who can give their best to the organization.

The engineers in the automotive or electrical or mechanical field are in demand.

Some of the firms going for automation, i.e. planning for CAD (Computer Aided
Designs) systems, are also recruiting people with IT specializations.

Employment Status In Indian Automobile Industry

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Indian economy has seen vast developments in all areas, automobile,

telecommunication, textile, mining, BPO, KPO, agriculture, retail, food and beverages,
etc. After succeeding various hurdles that came in the way through significant
investments, dedication and hard work it has now become the fastest growing economy.
Like other sectors, Indian automobile industry has also witnessed a rapid growth and
technological change.

This has led to change in the human resource policies and practices. More and
more labour is being employed, proper training is provided to the new joiners; also there
are development programs for the employees to integrate the technological change.

Improved information technology and automotive developments also demand the

human resource to develop and acquire the desired skills. Investment is leading to the
employment growth in the sector. With the emergence of new projects and introduction
of technological advancements, the focus is more on the skilled and experienced human
resource. The companies are looking for skilled and hard working people who can give
their best to the organization.

Engineers are in demand in automotive, electrical and mechanical fields. Some of

the firms going for automation, i.e. planning for CAD systems, are also recruiting people
with IT specializations.

The automobile sector in India has provided employment to more than 7 lakh
skilled workforce. The States like Maharashtra, Andhra Pradesh, Karnataka, and Haryana
are having most of the automobile companies that witness many major technological
developments and 15% growth in the Indian automobile sector. Given below is the
employment status of the major automobile centres in the country:

Career Opportunities

Employment status of Indian automobile sector (FY 2005-06)

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Top Ten Players in Indian Automobile Sector

1. Maruti Udyog Limited

2. Hero Motors Limited
3. Tata Group
4. Bajaj Auto Limited
5. Mahindra Group
6. Ashok Leyland
7. Yamaha Motor India
8. Hyundai Motors India Limited
9. Toyota Kirloskar Motor Private Limited
Honda Siel Cars India Limited

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Tata Motors Ltd

Founder JRD Tata

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A. Profile

Tata Motors Limited is India's largest automobile company, with consolidated

revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader in
commercial vehicles in each segment, and among the top three in passenger vehicles with
winning products in the compact, midsize car and utility vehicle segments. The company
is the world's fourth largest truck manufacturer, and the world's second largest bus
manufacturer.

The company's 23,000 employees are guided by the vision to be "best in the
manner in which we operate, best in the products we deliver, and best in our value system
and ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and
breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled
out in 1954. The company's manufacturing base in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and
Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an
industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to
produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new
plant at Sanand (Gujarat). The companys dealership, sales, services and spare parts
network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat
branded cars in India.

Tata Motors, the first company from India's engineering sector to be listed in the
New York Stock Exchange (September 2004), has also emerged as an international
automobile company. Through subsidiaries and associate companies, Tata Motors has
operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land
Rover, a business comprising the two iconic British brands that was acquired in 2008. In
2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second
largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has
launched several new products in the Korean market, while also exporting these products
to several international markets. Today two-thirds of heavy commercial vehicle exports
out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in
Hispano Carrocera, a reputed 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 fully-built buses and

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coaches for India and select international markets. In 2006, Tata Motors entered into joint
venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture
and market the company's pickup vehicles in Thailand. The new plant of Tata Motors
(Thailand) has begun production of the Xenon pickup truck, with the Xenon having been
launched in Thailand in 2008.

Tata Motors is also expanding its international footprint, established through

exports since 1961. The company's commercial and passenger vehicles are already being
marketed in several countries in Europe, Africa, the Middle East, South East Asia, South
Asia and South America. It has franchisee/joint venture assembly operations in Kenya,
Bangladesh, Ukraine, Russia and Senegal.

The foundation of the company's growth over the last 50 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate them
into customer-desired offerings through leading edge R&D. With over 2,000 engineers
and scientists, the company's Engineering Research Centre, established in 1966, has
enabled pioneering technologies and products. The company today has R&D centres in
Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It was
Tata Motors, which developed the first indigenously developed Light Commercial
Vehicle, Indias first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully
indigenous passenger car. Within two years of launch, Tata Indica became Indias largest
selling car in its segment. In 2005, Tata Motors created a new segment by launching the
Tata Ace, India's first indigenously developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which
India and the world have been looking forward to. The Tata Nano has been subsequently
launched, as planned, in India in March 2009. A development, which signifies a first for
the global automobile industry, the Nano brings the comfort and safety of a car within the
reach of thousands of families. The standard version has been priced at Rs.100,000
(excluding VAT and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with

generous leg space and head room. It can comfortably seat four persons. Its mono-
volume design will set a new benchmark among small cars. Its safety performance
exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds
regulatory requirements. In terms of overall pollutants, it has a lower pollution level than
two-wheelers being manufactured in India today. The lean design strategy has helped
minimise weight, which helps maximise performance per unit of energy consumed and
delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low
carbon dioxide emissions, thereby providing the twin benefits of an affordable
transportation solution with a low carbon footprint.

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In May 2009, Tata Motors introduced ushered in a new era in the Indian
automobile industry, in keeping with its pioneering tradition, by unveiling its new range
of world standard trucks. In their power, speed, carrying capacity, operating economy and
trims, they will introduce new benchmarks in India and match the best in the world in
performance at a lower life-cycle cost.

In June 2009, the exciting new range of premium luxury vehicles from Jaguar and
Land Rover were introduced for the Indian market. These include the Jaguar XF, XFR
and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover.

The years to come will see the introduction of several other innovative vehicles,
all rooted in emerging customer needs. Besides product development, R&D is also
focussing on environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and automotive

solutions, construction equipment manufacturing, automotive vehicle components
manufacturing and supply chain activities, machine tools and factory automation
solutions, high-precision tooling and plastic and electronic components for automotive
and computer applications, and automotive retailing and service operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter and
spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global
Compact, and is engaged in community and social initiatives on labour and environment
standards in compliance with the principles of the Global Compact. In accordance with
this, it plays an active role in community development, serving rural communities
adjacent to its manufacturing locations.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent
future.

B. Products:
• TATA Safari
• TATA Indigo
• TATA Indigo SW
• TATA Indica
• TATA Sumo
• TATA Nano

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C. Milestones
It has been a long and accelerated journey for Tata Motors, India's leading
automobile manufacturer. Some significant milestones in the company's journey towards
excellence and leadership.

1945 • Tata Engineering and Locomotive Co. Ltd. was established to manufacture
locomotives and other engineering products.

1948 • Steam road roller introduced in collaboration with Marshall Sons (UK).

1954 • Collaboration with Daimler Benz AG, West Germany, for manufacture of
medium commercial vehicles. The first vehicle rolled out within 6 months
of the contract.

1959 • Research and Development Centre set up at Jamshedpur.

1961 • Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.

1966 • Setting up of the Engineering Research Centre at Pune to provide impetus

to automobile Research and Development.

1971 • Introduction of DI engines.

1977 • First commercial vehicle manufactured in Pune.

1983 • Manufacture of Heavy Commercial Vehicle commences.

1985 • First hydraulic excavator produced with Hitachi collaboration.

1986 • Production of first light commercial vehicle, Tata 407, indigenously

designed, followed by Tata 608.

1989 • Introduction of the Tatamobile 206 - 3rd LCV model.

1991 • Launch of the 1st indigenous passenger car Tata Sierra.

• TAC 20 crane produced.

• One millionth vehicle rolled out.

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1992 • Launch of the Tata Estate.

1993 • Joint venture agreement signed with Cummins Engine Co. Inc. for the
manufacture of high horsepower and emission friendly diesel engines.

1994 • Launch of Tata Sumo - the multi utility vehicle.

• Launch of LPT 709 - a full forward control, light commercial vehicle.
• Joint venture agreement signed with M/s Daimler - Benz / Mercedes -
Benz for manufacture of Mercedes Benz passenger cars in India.

• Joint venture agreement signed with Tata Holset Ltd., UK for

manufacturing turbochargers to be used on Cummins engines.

1995 • Mercedes Benz car E220 launched.

1996 • Tata Sumo deluxe launched.

1997 • Tata Sierra Turbo launched.

• 100,000th Tata Sumo rolled out.

1998 • Tata Safari - India's first sports utility vehicle launched.

• 2 millionth vehicle rolled out.

• Indica, India's first fully indigenous passenger car launched.

1999 • 115,000 bookings for Indica registered against full payment within a
week.

• Commercial production of Indica commences in full swing.

2000 • First consignment of 160 Indicas shipped to Malta.

• Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched.
• Utility vehicles with Bharat 2 (Euro II) compliant engine launched.
• Indica 2000 (Euro II) with multi point fuel injection petrol engine
launched.
• Launch of CNG buses.

• Launch of 1109 vehicle - Intermediate commercial vehicle.

2001 • Indica V2 launched - 2nd generation Indica.

• 100,000th Indica wheeled out.
• Launch of CNG Indica.

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• Launch of the Tata Safari EX

• Indica V2 becomes India's number one car in its segment.

• Exits joint venture with Daimler Chrysler.

2002 • Unveiling of the Tata Sedan at Auto Expo 2002.

• Petrol version of Indica V2 launched.
• Launch of the EX series in Commercial vehicles.
• Launch of the Tata 207 DI.
• 2,00,000th Indica rolled out.
• 5,00,000th passenger vehicle rolled out.
• Launch of the Tata Sumo'+' Series
• Launch of the Tata Indigo.

• Tata Engineering signed a product agreement with MG Rover of the UK.

2003 • Launch of the Tata Safari Limited Edition.

• The Tata Indigo Station Wagon unveiled at the Geneva Motor Show.
• On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes
Tata Motors Limited.
• 3 millionth vehicle produced.
• First CityRover rolled out
• 135 PS Tata Safari EXi Petrol launched

• Tata SFC 407 EX Turbo launched

2004 • Tata Motors unveils new product range at Auto Expo '04.
• New Tata Indica V2 launched
• Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment
agreement
• Indigo Advent unveiled at Geneva Motor Show
• Tata Motors completes acquisition of Daewoo Commercial Vehicle
Company
• Tata LPT 909 EX launched
• Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy
duty truck 'NOVUS' , in Korea
• Sumo Victa launched
• Indigo Marina launched

• Tata Motors lists on the NYSE

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2005 • Tata Motors rolls out the 500,000th Passenger Car from its Car Plant
Facility in Pune
• The Tata Xover unveiled at the 75th Geneva Motor Show
• Branded buses and coaches - Starbus and Globus - launched
• Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus
manufacturing Company
• Tata Ace, India's first mini truck launched
• Tata Motors wins JRD QV award for business excellence.
• The power packed Safari Dicor is launched
• Introduction of Indigo SX series - luxury variant of Tata Indigo
• Tata Motors launches Indica V2 Turbo Diesel.
• One millionth passenger car produced and sold
• Inauguration of new factory at Jamshedpur for Novus
• Tata TL 4X4, India's first Sports Utility Truck (SUT) is launched
• Launch of Tata Novus

• Launch of Novus range of medium trucks in Korea, by Tata Daewoo

Commercial
Vehicle Co. (TDCV)

2006 • Tata Motors vehicle sales in India cross four million mark
• Tata Motors unveils new long wheel base premium Indigo & X-over
concept at Auto Expo 2006
• Indica V2 Xeta launched
• Passenger Vehicle sales in India cross one-million mark
• Tata Motors and Marcopolo, Brazil, announce joint venture to
manufacture fully built buses & coaches for India & markets abroad
• Tata Motors first plant for small car to come up in West Bengal
• Tata Motors extends CNG options on its hatchback and estate range
• TDCV develops South Korea's first LNG-Powered Tractor- Trailer
• Tata Motors and Fiat Group announce three additional cooperation
agreements

• Tata Motors introduces a new Indigo range

2007 • Construction of Small Car plant at Singur, West Bengal, begins on January
21
• New 2007 Indica V2 range is launched
• Tata Motors launches the longwheel base Indigo XL, India's first stretch
limousine

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• Common rail diesel (DICOR) engine extended to Indigo sedan and estate
range
• Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi),
announce formation of a joint venture company in Thailand to
manufacture, assemble and market pickup trucks.
• Roll out of 100,000th Ace
• Tata-Fiat plant at Ranjangaon inaugurated
• Launch of a new Upgraded range of its entry level utility vehicle offering,
the Tata Spacio.
• CRM-DMS initiative crosses the 1000th location milestone
• Launch of Magic, a comfortable, safe, four-wheeler public transportation
mode, developed on the Ace platform
• Launch of Winger, India’s only maxi-van
• Fiat Group and Tata Motors announce establishment of Joint Venture in
India
• Launch of the Sumo Victa Turbo DI, the new upgraded range of its entry-
level utility vehicle, the Sumo Spacio
• Tata Motors launches Indica V2 Turbo with dual airbags and ABS
• Launch of new Safari DICOR 2.2 VTT range, powered by a new 2.2 L
Direct Injection Common Rail (DICOR) engine.

• Rollout of the one millionth passenger car off the Indica platform.

2008 • Ace plant at Pantnagar (Uttarakhand) begins production.

• Indica Vista – the new generation Indica, is launched.
• Tata Motors' new plant for Nano to come up in Gujarat.
• Latest common rail diesel offering- the Indica V2 DICOR, launched.
• Indigo CS (Compact Sedan), world’s first sub four-metre sedan, launched.
• Launch of the new Sumo -- Sumo Grande, which combines the looks of an
SUV with the comforts of a family car.
• Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo.
• Xenon, 1-tonne pick-up truck, launched in Thailand.
• Tata Motors signs definitive agreement with Ford Motor Company to
purchase Jaguar and Land Rover.
• Tata Motors completes acquisition of Jaguar Land Rover.
• Tata Motors introduces new Super Milo range of buses.
• Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III
Commonwealth Youth Games Pune 2008.
• Indica Vista – the second generation Indica, is launched.

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Amir Faisal

• Tata Motors launches passenger cars and the new pick-up in D.R. Congo.

2009 • Tata Marcopolo Motors' Dharwad plant begins production.

• Tata Motors launches Nano - The People's Car
• Introduction of new world standard truck range.

• Launch of premium luxury vehicles - Jaguar XF, XFR and XKR and Land
Rover Discovery 3, Range Rover Sport and Range Rover from Jaguar and
Land Rover in India.

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Amir Faisal

D. Balance sheet
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's fund
Equity share capital 514.05 385.54 385.41 382.87 361.79
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 11,855.15 7,428.45 6,458.39 5,127.81 3,749.60
Loan funds
Secured loans 5,251.65 2,461.99 2,022.04 822.76 489.81
Unsecured loans 7,913.91 3,818.53 1,987.10 2,114.08 2,005.61
Total 25,534.76 14,094.51 10,852.94 8,447.52 6,606.81
Uses of funds
Fixed assets
Gross block 13,905.17 10,830.83 8,775.80 7,971.55 6,611.95
Less : revaluation reserve 25.07 25.51 25.95 26.39 -
Less : accumulated
depreciation 6,259.90 5,443.52 4,894.54 4,401.51 3,454.28
Net block 7,620.20 5,361.80 3,855.31 3,543.65 3,157.67
Capital work-in-progress 6,954.04 5,064.96 2,513.32 951.19 538.84
Investments 12,968.13 4,910.27 2,477.00 2,015.15 2,912.06
Net current assets
Current assets, loans &
advances 10,836.58 10,781.23 10,318.42 9,812.06 7,248.88
Less : current liabilities &
provisions 12,846.21 12,029.80 8,321.20 7,888.65 7,268.80
Total net current assets -2,009.63 -1,248.57 1,997.22 1,923.41 -19.92

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Amir Faisal

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Miscellaneous expenses not
written 2.02 6.05 10.09 14.12 18.16
Total 25,534.76 14,094.51 10,852.94 8,447.52 6,606.81
Notes:
Book value of unquoted
investments 12,358.84 4,145.82 2,117.86 1,648.57 2,480.15
Market value of quoted
investments 558.32 2,530.55 1,323.08 1,550.00 1,260.05
Contingent liabilities 5,433.07 5,590.83 5,196.07 2,185.63 1,450.32
Number of equity
sharesoutstanding (Lacs) 5140.08 3855.04 3853.74 3828.34 3617.52

Profit loss account

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Income
Operating income 25,660.67 28,767.91 26,664.25 20,088.63 17,199.17
Expenses
Material consumed 19,039.41 20,931.81 19,529.88 14,376.11 12,101.28
Manufacturing expenses 1,171.59 1,230.14 1,200.36 929.82 830.45
Personnel expenses 1,551.39 1,544.57 1,367.83 1,143.13 1,039.34
Selling expenses 1,224.15 1,179.48 1,068.56 759.54 598.75
Adminstrative expenses 1,867.05 1,982.79 1,488.16 1,042.52 911.73
Expenses capitalised -916.02 -1,131.40 -577.05 -308.85 -282.43
Cost of sales 23,937.57 25,737.39 24,077.74 17,942.27 15,199.12
Operating profit 1,723.10 3,030.52 2,586.51 2,146.36 2,000.05
Other recurring income 841.54 359.42 887.23 685.18 399.94

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Amir Faisal

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Adjusted PBDIT 2,564.64 3,389.94 3,473.74 2,831.54 2,399.99
Financial expenses 704.92 471.56 455.75 350.24 234.30
Depreciation 874.54 652.31 586.29 520.94 450.16
Other write offs 51.17 64.35 85.02 73.78 67.12
Adjusted PBT 934.01 2,201.72 2,346.68 1,886.58 1,648.41
Tax charges 12.50 547.55 660.37 524.93 415.50
Adjusted PAT 921.51 1,654.17 1,686.31 1,361.65 1,232.91
Non recurring items 79.75 374.75 227.15 167.23 4.04
Other non cash adjustments 15.29 - -0.07 - -1.54
Reported net profit 1,016.55 2,028.92 1,913.39 1,528.88 1,235.41
Earnigs before appropriation 2,399.62 3,042.75 2,690.15 2,094.54 1,601.21
Equity dividend 311.61 578.43 578.07 497.94 452.19
Preference dividend - - - - -
Dividend tax 34.09 81.25 98.25 69.84 63.42
Retained earnings 2,053.92 2,383.07 2,013.83 1,526.76 1,085.60

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Amir Faisal

Honda Siel Cars India Ltd

Founder Soichiro Honda

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Amir Faisal

A. Profile
Honda Siel Cars India, Limited (HSCI) is a joint venture between the Honda
Motor Company Limited, Japan and Siel Limited, a Siddharth Shriram Group company.
It was begun in December 1995. The Honda City, its first offering introduced in 1997,
revolutionized the Indian passenger car market and has ever since been recognized as an
engineering marvel in the Indian automobile industry. The success of City as well as all
its other models has led HSCI to become the leading premium car manufacturer in India.
The total investment made by the company in India till date is Rs. 1620 crores, further
investment of RS. 1000 crore is planned and being currently invested for the coming
second plant in Rajasthan. The company has a capacity of manufacturing 100,000 cars
Mr. Masahiro Takadegawa is the current President and CEO of HSCI. He took over this
post in August 2005

B. Manufacturing facility
HSCI's manufacturing unit was set up in 1997 at Greater Noida, Uttar Pradesh.
The initial investment was Rs. 450 crore. The plant was built on a plot of 150 acres. The
initial installed capacity of the plant was 30,000 cars per annum. The current production
capacity of the plant is 50,000 cars per annum. The production capacity expansion was
facilitated by an investment of Rs.150 crores. The company plans to further raise its
capacity to 100,000 units per annum by the end of 2007 and 150,000 units per annum by
2010.[1] The company has planned a new and further more technologically advanced
plant in Bhiwadi. The work for the same has been started and the plant will be functional
in a year or two.

The company operates under the stringent standards of ISO 9001 for quality
management and ISO 14001 for environment management.

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C. Vehicles

HSCI launched its first car for the Indian market, the Honda City in 1997. The
City was relaunched in 2003 as the Honda City ZX. The Honda Civic was launched in
July 2006 which was followed by the upgrade of HSCI's first SUV, the Honda CR-V.
The new CR-V was released in November, 2006. The Honda Accord, HSCI's offering in
the luxury car segment, was also facelifted in January 2007.

The Honda City, Civic and Accord models are produced in India; the CR-V is
sold as a CBU import from Japan.

 Honda City
 Honda Accord
 Honda Civic
 Honda CR-V
 Honda Jazz

D. Awards

2006

 Best Indian Company (unlisted) by Business Standard Group

 Manufacturer of the Year by NDTV Profit-Car India
 Manufacturer of the Year by CNBC-TV 18 Autocar India
 No 1 Mid Size Car (Honda City); No 1 Entry Luxury Car (Honda Accord)
and No 1 Premium SUV (Honda CR-V) by TNS
 Best Mid-size Car in Initial Quality (Honda City) and Most Appealing
Mid-size car (Honda City) by JD Power

2005

 CNBC Autocar CAR of the year 2004 - Honda City

 ICICI Overdrive SUV of the Year 2004 - Honda CR-V
 ICICI Overdrive Car of the Year 2004 - Honda City
 Business Standard Motoring Car of the Year 2004 - Honda City

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Amir Faisal

BALANCE SHEET
All numbers in thousands

PERIOD ENDING 31-Mar-09 31-Mar-08 31-Mar-07

Assets
Current Assets
Cash And Cash Equivalents 7,110,801 10,614,110 8,037,141
Short Term Investments - - -
Net Receivables 22,911,341 25,465,090 22,923,361
Inventory 12,812,798 12,112,526 10,056,486
Other Current Assets 4,763,194 4,647,111 3,628,336

Total Current Assets 47,598,133 52,838,837 44,645,324

Long Term Investments 31,305,315 35,145,394 32,146,779
Property Plant and Equipment 35,385,856 31,514,737 20,526,965
Goodwill - - -
Intangible Assets - - -
Accumulated Amortization - - -
Other Assets 7,445,540 7,918,016 4,991,183
Deferred Long Term Asset Charges - - -

Total Assets 121,734,845 127,416,984 102,310,250

Liabilities
Current Liabilities
Accounts Payable 13,406,676 18,746,661 17,424,388
Short/Current Long Term Debt 27,648,723 25,837,467 17,350,855
Other Current Liabilities 2,589,492 2,669,228 1,668,737

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Amir Faisal

Total Current Liabilities 43,644,890 47,253,355 36,443,980

Long Term Debt 19,906,161 18,550,185 16,198,816
Other Liabilities 11,599,860 11,204,304 7,834,144
Deferred Long Term Liability Charges 4,041,390 3,079,823 2,686,408
Minority Interest 1,267,477 1,432,241 1,044,710
Negative Goodwill - - -

Total Liabilities 80,459,779 81,519,908 64,208,057

Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 886,490 869,277 731,570
Retained Earnings 52,522,450 51,509,828 39,566,565
Treasury Stock (738,634) (726,463) (352,232)
Capital Surplus 1,777,049 1,742,543 1,466,497
Other Stockholder Equity (13,172,289) (7,498,109) (3,310,206)

Total Stockholder Equity 41,275,066 45,897,077 38,102,194

Net Tangible Assets $41,275,066 $45,897,077 $38,102,194

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Amir Faisal

INCOME STATEMENT
All numbers in thousands
PERIOD ENDING 31-Mar-09 31-Mar-08 31-Mar-07

Total Revenue 103,115,782 121,228,623 94,240,690

Cost of Revenue 76,421,695 86,286,017 66,853,707

Gross Profit 26,694,088 34,942,606 27,386,983

Operating Expenses
Research Development 5,800,929 5,938,386 4,690,700
Selling General and
18,939,836 19,377,820 15,455,312
Administrative
Non Recurring - - -
Others - - -

Total Operating Expenses - - -

Operating Income or Loss 1,953,323 9,626,401 7,240,972

Income from Continuing Operations

Total Other
(55,270) (410,515) (391,842)
Income/Expenses Net
Earnings Before Interest
1,898,053 9,215,886 6,849,130
And Taxes
Interest Expense 232,193 167,892 109,752
Income Before Tax 1,665,860 9,047,994 6,739,378
Income Tax Expense 1,131,301 3,913,104 2,412,691
Minority Interest (143,458) (275,811) (170,995)

Net Income From

1,411,152 6,060,394 5,034,737
Continuing Ops

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Amir Faisal

Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting
- - -
Changes
Other Items - - -

Net Income 1,411,152 6,060,394 5,034,737

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares $1,411,152 $6,060,394 $5,034,737

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