Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Investor Presentation (May 2017)
22 slides from Tata Motors Passenger Vehicles's investor presentation, May 23, 2017
Slide 1: Tata Motors Group India Business
Tata Motors Group India Business - 23.05.2017 Guenter Butschek
Slide 2: Industry growth vs TML growth by segment, FY15-FY17
20% 100% 83% 10% 72% 80% 71% 10% 4% 58% 56% 3% 60% 0.8% 39% 36% 53% 0% 40% 37% 31% -8% FY15 FY16 FY17 39% 35% 20% 12% 19% -10% 15% -17% 0% -20% FY15 FY16 FY17 Industry Growth TML Growth MHCV ICV PU SCV Cargo Buses 25.0% 8.0% 20.0% 21.6% 5.8% 6.4% 6.0% 5.3% 15.0% 4.0% 10.0% 7.7% 9.4% 4.3% 6.0% 2.0% 3
Slide 3: We have identified our challenges in Commercial and Passenger vehicles business
We have identified our challenges in Commercial and Passenger vehicles business Commercial Vehicles (CV) » Passenger Vehicles (PV) 1. Delay in addressing specific payload requirements 1. Product Portfolio 2. Product Gaps in white spaces 2.Time to market 3. Aggressive discounting in the industry 3. Q
Slide 4: Tata Motors embarked upon a Transformation Journey
Tata Motors embarked upon a Transformation Journey : = = — ‘ Balanced Scorecard approach implemented to set stretch targets till 2019 CV & PV long term strategy and product cycle plan developed Strategic game plan - ImpACT(Improvement by Action) projects initiated to drive performance improvement Ke
Slide 5: High ImpACT projects launched to focus on key levers
i i 'ROVEMENT High ImpACT projects launched to focus on key levers IMBC Intense Topline focus New Product Introductions Market Share Growth Sales Conversion Agile Cost Management * Margin Improvement through Cost reduction * Lean and agile management structure * Inventory & Distribution logistics 5%
Slide 6: Commercial Vehicles
Commercial Vehicles FUTUREADY TATA MoTORS °
Slide 7: CV Strategy: product interventions, dealer engagement, after sales
Product interventions Dealer / Key International Account Business Engagement, Strategy After sales CV Strategy Technology/ Defence Strategy Powertrain Roadmap Operational Excellence 7
Slide 8: Upcoming product launches in CV catering to higher payload and better TCO requirements
Upcoming product launches in CV catering to higher payload and better TCO requirements 6 New product LPTK 2518 launches in MHCV in LPS 4923 LPK 2518HD Signa on MAV 37 FY18, ramp up of 4 i launches in 37/49 T New BS4 engine program 5 from last year for 3718 Tippers . LPTK 3118 SIGNA Tippers aS 4 new
Slide 9: SCV Passenger & Buses, SCV & Pickups
SCV Passenger SCV & & Buses Pickups 9
Slide 10: Tata Safari Storme into Indian Army; Tata Prima to Saudi Arabia & Bhutan
4 gee § \en? —-— ie, yet a. i ae A eo = Tata Safari STORME’s into the Indian Army with the initial order for 3192 units el Tata Prima goes to Saudi Arabia & Bhutan
Slide 11: We have been the pioneers in bringing technology - proven and reliable
We have been the pioneers in bringing technology - proven and reliable Taking the lead in ‘xEV’/ alternative fuel solutions TML scale allows us to offer multiple technologies suited to all customer applications, tonnage points & usage patterns EGR Technology SCR Technology * Pioneered in 2010 * Pion
Slide 12: Sales and service touch points
2500 • 64 70 1759 1881 1969 2000 1729 1777 60 54 1572 1385 1484 50 1500 • 40 1000 30 23 20 500 10 0 0 FY15 FY16 FY17 FY18 Projected FY14-15 FY15-16 FY16-17 No. of Sales Touch Points No. of Service Touch Points ) 2500 2366 2166 1964 2000 1500 1000 500 0 FY15 FY16 FY17 12
Slide 13: Passenger Vehicles
Passenger Vehicles FUTUREADY TATA MoToRS ™
Slide 14: A platform based strategy developed in Passenger Vehicles to build sustainable future
eet A platform based strategy developed in Passenger Vehicles to build sustainable future KEY ADVANTAGES variable No of platforms reduced from 6 to 2, e.g. AMP Nameplate/ Top hats to Platform ratio achieved > 4 Investment commitment of INR 2500 cr. for future programs Lesser complexity & economies o
Slide 15: A successful year for Passenger vehicles Business
A successful year for Passenger vehicles Business TIAGO : MOST AWARDED HATCHBACK THIS YEAR BOOKINGS ONTHE ROAD ‘AND STILL COUNTING TATATIGOR 24 ranking in JDP CSI score, with highest ever score achieved Road to Recovery/Growth 3 Successful launches in 3 different segments Product plan ready till FY2
Slide 16: Hexa Experience Centers and touch points
800 760 16 15 700 645 650 14 571 589 575 600 528 12 10 500 445 10 400 8 300 6 5 200 4 100 2 2 0 0 FY15 FY16 FY17 FY18 Projected FY 15 FY 16 FY 17 FY 18 (Proj) No. of Sales Touch Points No. of Service Touch Points • • 940 932 Hexa Experience Centers 920 920 900 880 860 843 840 820 800 780 FY15 FY16 F
Slide 17: TAMO will be our strategy to leverage new business models and technologies
TAMO will be our strategy to leverage new business models and technologies Anew sub-brand Ring-fenced Team Lean Operating Model Providing innovative A fast-paced vertical working in an Low volume, low investment, faster to market . mobility solutions incubator environment ~~ @ ‘TATA MOTORS Microsoft
Slide 18: Organizational Initiatives
Organizational Initiatives FUTUREADY TATA MoToRS ™
Slide 19: New organization structure geared up to bring speed, simplicity and agility
CA ft 6 New organization structure geared up to bring ‘speed, simplicity and agility’ 1. New Org OE Benefits Structure Lean and Accountable Organization 2. Job Evaluation Managerial levels reduced from 14 to 5 Empowerment within the BU’s Organization Effectiveness More ‘front line’ facing roles to i
Slide 20: Capacity utilisation, manufacturing performance, financial targets
CAPACITY UTILISATION MFG. PERFORMANCE FINANCIAL TARGETS CAPABILITY ENHANCEMENT • • • • • • • 20
Slide 21: Supplier Strategy to build a lean and responsive supply chain
Supplier Strategy to build a lean and responsive supply chain Pilot Example (Cars) Legacy model: 200 suppliers Existing Supplier Base xX Vehicle platform Supplier Capability ‘ - icati manufacturing Assessments ( Procure at Higher Tierisation of the locations MSA) Value Aggregation Supplier Base New
Slide 22: We are FUTUREADY
We are FUTUREADY FUTUREADY, TATA moToRS ”