It is my honour and privilege to interact with you as the Chairman of the Board at TataMotors and its British subsidiary Jaguar Land Rover.
The automotive industry is going through multiple changes from difierent dimensions changing regulatory and environmental standards as well as technologicaldisruptions and the industry is also witnessing increased competition.
From your Company's point of view JLR has posted an excellent performance but theperformance of the domestic segment has been a major concern. The commercial vehiclesegment has witnessed a continued decline in market share and the passenger carperformance has been muted.
Our consolidated net revenues declined by 1.2% to Rs269850 crore for the 12 months toMarch 31st 2017 and our consolidated profit before tax for the year fell sharply toRs9315 crore compared with Rs14126 crore in the prior year. Our standalone net revenuesincreased by 3.7% to Rs44477 crore for the 12 months to March 31st 2017 and ourstandalone loss before tax for the year fell to Rs2421 crore compared with Rs67 crore inthe prior year.
Jaguar Land Rover represents world-class quality reliability and performance throughits exceptional product range. The Company delivered a 9.2% increase in full year revenuesto GBP 24.3 billion in the last financial year and reported pre-tax profits up 3.4% atGBP 1.6 billion.
In the domestic market the market share in both the Commercial Vehicles and PassengerVehicles have declined significantly. The market share for CV segment has fallen to 44.4%from a high of 59.4% in FY 2011-12 while market share for PV declined to 5.2% from 13.1%in the same period. Overall delays in new product launches as well as lack of adequateresponsiveness to the competitive environment and an unsustainable cost structure havecontributed to this performance.
In the domestic business segment business turnaround is the need of the hour andmanagement is working with renewed focus and energy to improve our market share reduceour cost base streamline the supply chain and ensure launch of products on time todelight our customers.
I am confident that the series of actions being taken by the management team willsucceed and show an improved performance in both the commercial vehicle and passengervehicle segments in India and deliver better financial results.
I would like to thank our employees as well as our extended partners includingdealers suppliers and other stakeholders for their hard work and commitment in thiscritical phase of Tata Motors.
Finally I thank you for your continued trust confidence and support.
|Best Regards |
|N Chandrasekaran |
|Mumbai May 23 2017 |