21 slides from Tata Motors Passenger Vehicles's conference presentation, Aug 22, 2011
Slide 1: Investor Conference Presentation
Investor Conference Presentation 22nd August 2011 INVESTOR RELATIONS 1
Slide 2: Disclaimer
Disclaimer • Statements in this presentation describing the objectives, projections, estimates and expectations of the Company i.e. Tata Motors Ltd and its direct and indirect subsidiaries and its associates may be “forward looking statements” within the meaning of applicable securities laws and reg
Slide 3: Indian Automobile Industry
Indian Automobile Industry INVESTOR RELATIONS 3
Slide 4: Growth in the past has been supported by factors expected to be sustainable
Growth in the past has been supported by factors expected to be sustainable in the coming years…… resulting in a strong domestic Automobile growth story Urbanization Growth in working GDP growth and Growth in road population rise in disposable infrastructure ‘Urbanization of Mind’ 1400 70% incomes C
Slide 5: Domestic Sales: The Indian Automobile Industry has evolved in phases
The Indian Automobile Industry has evolved in 3 phases Protection Liberalization Globalization • Closed economy (till 80s) • Mfg licensed, QR on import • Delicensing (93), QR removal • Removal of • High duties & sales tax • Entry of foreign players (OEM) most import • PSUs, Basic Industries • Techni
Slide 6: Commercial Vehicles
Commercial Vehicles INVESTOR RELATIONS 6
Slide 7: 2010 marks an inflection point for global CV industry with markets poised for recovery
2010 marks an inflection point for global CV industry with markets poised for recovery after a recession • Global CV industry emerging from recession and expected to grow at 8% • Developed markets like NA and Europe, which saw a 30% decline in past one year, are expected to recover their volumes onl
Slide 8: Global CV Volume Trends
2010 marks an inflection point for global CV industry with markets poised for recovery after a recession Global CV Volume Trends (‘000 units) 20,372 6% CAGR 8% CAGR -5% CAGR ASIA 14,542 10,351 excluding JAPAN 13,881 5,449 8% 29% 7,047 832 JAPAN 845 4% -20% NORTH 3,764 AMERICA 3,282 675 -28% 10% 2,36
Slide 9: Trends affecting CV industry in India
Trends affecting CV industry in India Key Macro- economic / Impact on Indian CV Infrastructural trend Industry Steady growth in GDP (7.5-8% yoy) Growth in overall truck demand Development of urban and rural road Demand for Buses, small infrastructure (NHDP1 and PGMSY2) – 110,000 goods/ passenger LCV
Slide 10: Planned road network development is poised to increase demand
The planned massive urban and rural road network development is poised to increase demand Impact on CV Sales 1000 900 Dramatic impact 800 in initial stage of Germany Golden road France Quadrilateral 700 development UK MHCV / m population 600 Truck penetration Turkey Spain 500 4 NSEW Portugal Corrido
Slide 11: CV industry in India continues its strong growth in the high volume segments
CV industry in India continues its strong growth in the high volume segments 300 MHCV industry volumes 250 MAV Tipper 61 TA Tipper 200 20 54 25 27 43 34 TAV Trucks Volumes ('000) 32 150 38 28 19 9 22 30 MAV 25 16 21 5 32 16 22 ton 12 18 48 MAV 31 100 21 46 52 19 ton 50 47 103 23 Tractors 83 59 48 50
Slide 12: SCV industry volumes
CV industry in India continues its strong growth in the high volume segments SCV industry volumes Total 205 217 235 246 265 292 Volumes (‘000 units) 28% 22% 19% 17% 34% 30% 1% 1% 2% 2% 2% 2% Small 3W 5% 17% 37% 40% 28% 34% Large 3W Micro Trucks Mini Trucks 59% 51% 42% 42% 43% 42% FY 10 FY 11 FY 12 F
Slide 13: Passenger Cars
Passenger Cars INVESTOR RELATIONS 13
Slide 14: Strong growth in Indian PC industry expected over next 10 years
Strong growth in Indian PC industry expected over next 10 years Global passenger car market Key sensitivities Million units Higher market volumes Rank FY10 FY21 CAGR driven by: ▪ Indian ▪ GST introduction market will ▪ CNG proliferation and rapid 1 ~9 ~20 8% grow faster CNG infrastructure ramp- CHIN
Slide 15: Trends affecting PC industry in India
Trends affecting PC industry in India Key Macro- economic / Infrastructural Impact on Indian PC trend Industry Favourable income demographics. Main buying Growth in overall car class (4l -22L income) households projected to demand grow significantly Development of urban and rural road Demand for aff
Slide 16: A and B segment hatchbacks will continue to dominate the market in 2020
A and B segment hatchbacks will continue to dominate the market in 2020 A- Segment ▪ Traditionally, A & B segment categories have been hatchbacks ▪ Hatchbacks will continue to dominate the market in 2020 A Segment – Segment will increase in volume due to increased offering of models by international
Slide 17: Hatchbacks will occupy 60% of the market by 2020
Hatchbacks (A-, A and B segments) will occupy 60% of the market by 2020 CAGR FY '10-21 Category level car demand ▪ A category remains the biggest ‘000 Units contributors to sales till FY '16 6,500 – 7,000 ▪ B & A- provide the maximum 575 - 625 SUV 11% A- segment contribution to growth over next 5 A
Slide 18: Mid-end segments for UVs and MPVs are expected to grow at a faster rate
Mid-end segments for UVs and MPVs are expected to grow at a faster rate SUV sales forecast by price band MPV sales forecast by price band Thousand units Thousand units 14% p.a. Premium Premium 8% p.a. 200-225 >1250k 20 35-40 50-60 >1000k 45 90-100 Pricing range (Rs) Pricing range (Rs) Mid end Mid en
Slide 19: Evolution of car growth along metro, tier 1, tier 2/3 and rural markets
Evolution of car growth along metro, tier 1, tier 2/3 and rural markets Geography level demand Implications ‘000 Units ▪ Metro/Tier 1 cities will be ~50% of the market 6,500 – 7,000 ▪ Rural markets will see a 3x explosive 1,450 – growth primarily due to increase in Rural 1,600 +12% pa number of hous
Slide 20: Young buyers (25-35 years) are expected to grow and dominate the car-buyer market
Young buyers (25-35 years) are expected to grow and dominate the car- buyer market Age Overall Percent Most of the buyers in the 18-34 age group purchase mini- compacts and compact vehicles Percent of all buyers in the age group <25 years 10 MINI COMPACT 45 11 COMPACT 18-34 18 25-30 years 26 13 STAN
Slide 21: Thank You
Thank You INVESTOR RELATIONS 21