Tata Motors Research Articles

Arbitrage Pricing Theory and its relevance in modelling market

This research compares the Arbitrage Pricing Theory (APT) to the Capital Asset Pricing Theory (CAPT) by looking at numerous macroeconomic factors that affect market security prices and determining how APT explains the majority of the returns. The goal of this study was to look at the fundamental aspects (revenue, assets, liabilities, and growth potentials) in order to compute the intrinsic value based on the investor's risk tolerance. The BSE and NSE websites were used to get month-by-month secondary data over a period of ten years (2010–2020), which included the share price returns of TATA Motors and Eicher Motors as well as the BSE Auto Index. The statistics on GDP growth rate, inflation, and interest rates was obtained from the RBI's official website. The findings imply that the APT model accurately describes the majority of the company's share returns. Furthermore, it is clear that macroeconomic variables have a substantial impact on the risk of an asset over time and are one of the key inputs that financial analysts must consider when calculating expected returns. Furthermore, the sources of risk incorporated in a data set in an APT model inform the investor as to why certain stocks move in a particular direction.

A Technology Review of Energy Storage Systems, Battery Charging Methods and Market Analysis of EV Based on Electric Drives

The transportation sector is by far the largest oil consumer making it a prime contributor to air pollution. EVs (Electric vehicles) will be beneficial to the environment and will help to alleviate the energy crisis due to their low dependence on oil and negligible emissions. Technology innovation in EVs is of significant interest to researchers, companies, and policy-makers in many countries. EVs integrate various kinds of distinct technologies where some of the important factors in considerations related to EVs are: a wide range of electrical drive configurations; advanced electronics that enable automotive innovations; meeting the challenges of automotive electronics; electrifying transportation in the future. This paper reviews the recent progress in EV technology, which consists of various motor drives applied in EV propulsion, classification of EVs such as BEV, PHEV, HEV, FCEV, and types of energy storage system with chargers, and software simulating devices. This paper also highlights the EV market with various challenges. The main findings of this research are: (1) Battery technology is the EV's bottleneck. Lithium-ion batteries for vehicles have high capacity and large serial-parallel numbers, which, coupled with problems such as safety, durability, uniformity, and cost, impose limitations on the wide application. (2) Incentives and encouragement for EV owners should be tailored to their specific needs in order to improve their socioeconomic standing. (3) Hyundai, MG Motors, Tesla, and Tata Motors appear to be the key players in India's critical subdomains of the EV market. (4) EV simulation software is necessary for vehicle design and development before the mass production of EVs. (5) PMSM has the potential to provide a high torque-to-current ratio, a high power-to-weight ratio, high efficiency, and robustness. Currently, the BLDC (Trapezoidal SPMSM) motors are the most preferred motors for electric vehicle applications due to their traction characteristics.

Implication of Business Strategy in Indian Automobile Industry: A Case of Tata Motors

Purpose: Strategic Analysis is a process of business organization which involves studying the business environment and its operations. For the effective decision making and smooth functioning of business organization, the strategic planning is an essential tool. An Indian multinational automobile manufacturing firm founded in 1945 by the Tata group under the name TELCO (Tata Engineering and Locomotive Company). Indian automaker Tata Motors is the biggest in the world. Since Tata Motors was founded, the company has been engaged in many charitable endeavours, including philanthropy. Strategic planning took a major role in the growth and profitability perspectives of this company. Tata Motors' acquisition of Jaguar and Land Rover is a unique example of a corporation making a strategic decision based on its internal strengths and external opportunities in order to succeed in a competitive market. Tata Motors sought to broaden the scope of its offering and the geographic scope of its market. A steady rise in the number of mergers in the Indian business has been observed over the past decade. Recently completed mergers and acquisitions are a good indicator of an industry's level of competitiveness, potentials, and capabilities. This research is undertaken to examine the firm's potential and capabilities by comparing its performance before and after mergers and acquisition. Design/Methodology/Approach: When a company expanding its operations in the global level, some factors such as Economic, technological, customer-segment and international competitions will take a major role. The author of this paper has studied the growth of TATA Motors, both domestically and globally, in this study. For the purpose of the study secondary data is collected through various sources such as journals, research articles, newspaper articles and websites of Tata Motors and other ventures. Findings/Result: The study highlights the critics of Tata Motors' acquisition desire factor out that the timing of the deal is affecting the worldwide economy. The call for business and passenger motors declined because of a slowdown with inside the home and international economy. The newly introduced Tata Nexon could be a game changer for the electric car market in the country due to India's large population and rising standard of living. Due to lack of innovation and major competitors in the market Tata Motors needs to be more innovative in its approach. Originality/Value: This paper studies the effectiveness of mergers and acquisitions in terms of change in company’s potentiality and capabilities. Paper Type: Research Case study based on Company Strategic Analysis.

Implication of Business Strategy in Indian Automobile Industry: A Case of Tata Motors

Implication of Business Strategy in Indian Automobile Industry: A Case of Tata Motors

An Empirical Study on Customers’ Preference of Cars with Special Reference to Maruti Suzuki and Tata Motors

In present day world cars have no longer remained a luxury item, especially small cars. Moreover, there has been an ambition among the people to own a car, more so during Covid times. The desire of the people has also been complimented by introduction of new models and offers by car manufacturers as well as easy source of finance at competitive rates. This study is undertaken to assess the factors considered by car buyers while selecting a car and their satisfaction level. For this study two manufacturers were selected- Maruti Suzuki the market leader and a strong Indian competitor Tata Motors. The study revealed that though Maruti Suzuki still has the highest customer base due to its brand image, Tata Motors is gaining new customers by providing strong and sleek cars.

Can customer sentiment impact firm value? An integrated text mining approach

• The study investigates the impact of customer sentiment polarity on stock prices based on indian automobile sector databased. • A top-down approach is adopted to construct a financial proxy-based sentiment index completed with sentiment extracted from automobile news and customer reviews. • The research implies that customer sentiment is a major driver of investor sentiments, which in turn influences the stock market and the firm value. Developing measures to capture customer sentiment and securing a positive customer experience is a strategic necessity to improve firm profitability and shareholder value. The paper considers the relationship between customer satisfaction, earnings, and firm value as these drives change in stock prices, customer, and investor sentiment. The present study investigates the impact of customer sentiment polarity on stock prices based on Indian automobile sector databased such as the Indian Nifty Auto SNE (Maruti Suzuki, Tata Motors, and Eicher). A top-down approach is adopted to construct a financial proxy-based sentiment index completed with sentiment extracted from automobile news and customer reviews. The paper uses a text mining approach to holistically measure customer sentiment's impact on investor sentiment and stock prices. The study was initially performed at the overall individual stock from the Nifty Auto NSE but focused on the top three passenger vehicle manufacturing companies i.e., Maruti Suzuki, Tata Motors, and Eicher. It was found that the sentiment index was augmented with news and customer reviews allows predicting more accurately NIFTY AUTO stock price movements. This implies that customer sentiment is a major driver of investor sentiment which in turn impacts the stock market and the firm value. Thus, the present study is an integrated approach to holistically measure customer sentiment's impact on investor sentiment and stock prices.

A case for Tata Motors' acquisition of Jaguar Land Rover: strategic implications of the takeover

Mergers and acquisitions are important tools used globally by firms to maintain a competitive advantage over their counterparts. Yet, a recent Harvard Business Review study reveals that between 80%-90% of mergers and acquisitions fail. This case study discusses an acquisition in the luxury car market to highlight the factors that can lead to a successful takeover. The study uses the acquisition of the premium British car brands of Jaguar and Land Rover by Tata Motors, an Indian automaker to answer a few related questions and provide future research avenues.

Application of ALTMAN Z Score On Five Selected Industries

The research paper talks about application of Altman Z score on five selected industries. Altman Z score is a predicting tool for bankruptcy. It helps to find whether the company is in safe, grey or distress zone. The research of this tool was on five industries i.e. FMCG-Personal care, Automobile – 2 & three wheeler, Automobile – four wheeler, Airlines, and Cement. Altman score is applied on certain selected companies of the five selected. All companies in Personal care industry are in safe zone. From Airlines industry, Spice Jet and Global Vectra are in distress zone. In Automobile – 2 & three wheeler, other than Scooter's India all other companies are in safe zone. For Automobile four wheeler industry, Tata motors is in distress zone due to its past data. And Cement industry, except for India Cement and Birla Corp, all are in safe zone. Though more research in cement industry is required, Altman Z score can be applied to more industries with listed as well as unlisted companies to get more clear view about the industry.

Financial Performance Evaluation of Select Automobile Companies

India, with a growth rate of 6.6 per cent in the year 2022, is among the fastest growing economies in Asia. Manufacturing sector and agricultural sectors occupies second and third place in terms of contribution to GDP respectively. The automobile industry plays a vital role in Indian economy in India in terms of employment generation, production and sales. Automobile sector a key driver of macroeconomic growth. Success of any organisation depends on mainly on management of its finance efficiently; therefore financial performance evaluation is plays pivotal role. The aim of the paper is to evaluate the financial performance of select Automobile Companies using ratios. The study is desk research and it is based on the secondary data collected annual reports for five years 2016-17 to 2020-21. The population of the study comprises of top 10 automobile companies listed in BSE Ltd. as on 31-12-2021. The researcher has chosen top three companies on the basis of turnover. The sample companies are Tata Motors, Maruti Suzuki, and Hyundai Motors. The scope of the study is limited to the select companies which are from four wheel passengers’ vehicles only. The data collected for study were analysed using ratio analysis and EVA analysis. It is found that on an overall the financial performance of select sample automobile companies were in a slow pace, but Maruti Suzuki and Hyundai Motors were stable and better in their financial performance.

A Comparative Study on Working Capital Management of Tata Motors Limited and Maruti Suzuki India Limited

The automobile industry in India is one of the speedily growing industry. Working Capital Management is important in this industry due to increasing demand and huge investment in this sector requires proper management. Working Capital Management perform a vital role in the success and failure of a business due to its effect on the performance and liquidity. Thereby this study has been undertaken to Comparative analyse working capital management of Tata Motors Limited and Maruti Suzuki India Limited for the period of seven years from 2013-14 to 2019-20. In this study three objectives are set for research. The first one was to assess the impact of working capital on sales, second was to assess the impact of working capital on profitability and third was to evaluate the working capital performance of the companies under study through the use of various financial ratios. The study reflects that the efficiency of working capital management of the companies is influenced by the Liquidity Ratios, Debtor Turnover Ratio, Inventory Turnover Ratio and profitability Ratio.

Organization’s Sustainable Operational Complexity and Strategic Overview: TISM Approach and Asian Case Studies

As a region, Asia comprises communist China, democratic India and many small quasi-democratic and authoritarian states. Both China and India play a significant role in maintaining multilateral world order. Asia’s regional power remains with its enormous potential of resources for domestic markets and per capita purchasing power parity. Hence, the economic and the business aspects of the Asian region require comprehensive study. Sustainable operational excellence is a notion carried by an organisation’s sustainable economic development and other values. This study incorporates the multiple case study method. Twelve case organisations such as Tata Motors, Samsung, Nissan, Indigo, Mitsubishi, Huawei, Wilmar, Canon, NTPC, Hitachi, Singapore Airlines, and L&T were chosen to study their sustainability values, and operational and strategic strands. TISM (total interpretive structural modelling) method is used for model building; four variables such as operating activities, investing activities, financing activities, and SVE (Social value expenditures) are taken for empirical analysis. Based on the available secondary data, the study incorporated panel data regression analysis. The result shows that SVE positively and significantly explains operational activities that proxy with sustainable business practices. The study concludes with a Paux strategy framework for discussion and managerial implications.

Strategic Options for Automobile OEMs of Indian Origin to have Sustained Competitive Advantage: A Case of Tata Motors

The competitive landscape of automobile original equipment manufacturers around the globe is continuously changing, with new business models impacting the performance of automobile firms. The study uses benchmarking technique to benchmark Tata Motors passenger vehicle segment performance with a relevant foreign passenger vehicle manufacturer to explore the differences in core capabilities and platform strategies. The gaps reveal that there is tough competition among the firms in the automobile industry in India. The study also uses the problem structuring method to structure the key problem of Tata Motors' inadequate leverage of product platforms and identify the high potential root causes. The findings reveal that strategic options such as proper management of employees at top leadership positions, technologies, and strategic cooperation with partner firms may help Tata Motors better leverage new modular platforms. The new strategic options may also provide possibilities to scale internationally in niche vehicle product segments to achieve sustained competitive advantage. Among several potential capabilities and resources analyzed, only a few seem to be transferable to leverage advanced modular platforms and related digital technologies for Tata Motors.Supplementary InformationThe online version contains supplementary material available at 10.1007/s42943-021-00029-5.

E-mobility ecosystem innovation – impact on downstream supply chain management processes. Is India ready for inevitable change in auto sector?

PurposeThe purpose of this study is to understand the specific reasons why developed countries could easily start implementing innovative alternative fuel vehicles (e.g. electric vehicles or EVs) while the implementation in developing countries looks so far-fetched, with respect to infrastructure and downstream activities, and suggest the steps that can be taken to effectively address these issues.Design/methodology/approachThis research undertakes case study – Tesla (USA), Mahindra and Mahindra (India) and Tata Motors to bring out the problems being faced by manufacturers from developing countries vis-a-vis the developed countries. The consumers’ side has been adequately represented though an in-depth survey. An analysis is also carried out as to how Tesla has accrued competitive leverage by innovating and vertical integration of up as well as downstream systems.FindingsEV infrastructure remains grossly inadequate in developing countries like India. Two key areas that remain significantly unexplored are the installation of charging stations at parking lots and at the housing clusters and lack of competitive leverage in the services, processes and other downstream systems due to limited research and development capabilities. The performance metrics of domestic EVs lag those of conventional vehicles as well as foreign competitors like Tesla. Range anxiety is ranked as number one in the major concerns among the potential mass buyers of electric vehicles in India.Originality/valueThe value of the paper lies in an in-depth analysis of the relationship between horizontal and vertical perspectives as well as the impact of the product eco-system innovation on both the upstream as well as downstream nodes in the supply chain. Whereas the consumer attitudes and perspectives on e-mobility are inferred from a survey, the impact analysis matrix is used for analyzing the competitive leverage of Tesla through several features in the upstream, downstream and servitization.

From paradoxes to trade-offs: metaroutine enabled multi level ambidexterity at Tata Motors, India

PurposeThe purpose of this paper is to explore the multi-level ambidexterity challenges through the metaroutine lens. Further, while confronting the ambidexterity challenges, it is found that what is paradox at one level can be understood as tradeoffs at another level. This study uses an in-depth multi-level case study of Tata Motors, an Indian automotive giant highlighting the ambidexterity dynamics across strategic, business unit and functional levels to demonstrate that paradoxes at the strategic level are converted to manageable tradeoffs at the business unit/ operational level. Also, metaroutine-enabled ambidexterity explains a possible way through which multi-level ambidexterity can be promoted and managed within organizations.Design/methodology/approachThis study uses a case-based methodology (Eisenhardt, 1989) similar to the approach of Adler et al. (1999). The field research consisted of in-depth interviews, which focus on gathering information from the key involved members in the field, thus enabling us to understand how multi-level ambidexterity is promoted within Tata Motors. A semi-structured interview guide was used to collect data for this study.FindingsThe metaroutine lens offers an alternative route to explain the multi-level ambidexterity dynamics at Tata Motors. The ambidexterity questions at different levels in Tata Motors seem to be a mixture of paradoxes and tradeoffs. However, a key trend emerges. At the strategic and business unit level, the firm wanted to exploit their existing products and explore new customer segments. At the product level, the strategic and NPI core team wanted to best combine the customer centric explorations with exploitations resulting in cost savings. The ambidexterity questions at these two levels seem to be paradoxes. However, as the authors analyze the functional domains, it appears that each individual domain was working under increased constraints. Hence, the ambidexterity questions at the domain level seem to be a tradeoff based on the constraints faced by individual functional domains.Originality/valueThis study presents an in-depth multi-level case study of an Indian automotive giant, Tata Motors. The authors present the role of metaroutines in shaping the ambidexterity issues during the development of passenger vehicles. This study builds on the seminal work of Adler et al., 1999, and extends the discussion to the framing of the ambidexterity question as a paradox and/or a tradeoff. The core argument of this paper is that balancing opposite polarities in business models is basically a paradoxical issue in the exploitation/ exploration relationship.

An Analytical Study of Solvency, Liquidity and Bottom Line, of Listed Indian Automobile Companies

Sustaining concord among bottom line (Net Profitability), solvency and liquidity is acutely necessary for stable and holistic growth and development of every business. Liquidity, Profitability and Solvency (LPS) of every business is significantly afflicted through internal & external environmental factors such as economic fluctuations, ups and downs in business cycle, product life cycle, and pandemic situations of so and so forth. Continuing business, facing all above-mentioned conditions is a herculean task for each business. Marinating sustainable and holistic growth through attuning Liquidity, Profitability and Solvency (LPS) required systematic, professional and ethical approach pursued by management of the business. The basic objective behind this study is to analyze Liquidity, Profitability and Solvency (LPS) of selected automobile companies in India. It can be analyzed by evaluating the various ratios like profitability, liquidity and solvency. For this research study five years data viz. (2015 – 2020) of four giant companies were considered in automobile sector i.e., Maruti Suzuki, Hyundai India, Tata Motors Ltd and Mahindra & Mahindra Ltd. Researcher tried to find out correlation among liquidity, profitability, and solvency. Researcher found that that there is strong significant negative relationship between liquidity profitability and solvency.

Health risk assessment of trace element in the ambient air along the roadside in Dhanbad, India

Trace elements associated with ambient air dust particles have been investigated to assess future non-cancer toxic risk in children and adults. To investigate the trace elements, samples were collected with Respirable Dust Sampler at various locations in Dhanbad, India, during post-monsoon 2016, winter 2017, and summer 2017. Monitoring locations were selected along the roadside with heavy traffic load (Shramik Chowk), moderate-to-low traffic load (Dhaiya Gate), and low traffic load with small-scale industries (Govindpur Tata Motors). Further, the health risk caused due to the exposure of the trace elements was determined with the help of hazard quotient and hazard index. The hazard index value of Pb for children due to multi-pathway exposure was found to be > 1 in winter 2017 at all monitoring locations and in summer 2017 at Shramik Chowk and Govindpur Tata Motors will cause future non-cancer toxic risk in children. The hazard index value of Pb for children due to multi-pathway exposure was found to be > 1 in winter 2017 at all monitoring locations. The same in summer 2017 at Shramik Chowk and Govindpur Tata Motors would pose future non-cancer toxic risk in children. For adults, the values of hazard index for the investigated trace elements suggest that it would not cause future non-cancer toxic risk in them. Thus, understanding the presence of trace elements in the ambient air around roadside areas and its health risks is of utmost importance in view of implications for protective measures.

Aesthetic Exploration of Organizational Theatrics: a Case of Tata Motors’ Jaguar Land Rover Acquisition

This paper aims to critically analyze one of the most impactful events reported from the Indian corporate scenario in recent years, from the premise of its aesthetic underpinnings. Our focus is on the ambitious 2008 all cash cross-border acquisition of Jaguar and Land Rover businesses by Tata Motors Limited from Ford Motor Company, US. This move not only added stature to the already reputed brand but was also instrumental in positioning India in the global automotive arena. Using the Natyasastra, an ancient Sanskrit scripture on Indian dramaturgy, as an aesthetic tool, we attempt to unravel the emotional performance depicted by various stakeholders partaking in the theatrics of the Jaguar Land Rover acquisition event. In the backdrop of theatrical performance, we examine the dialogical exchange between three distinct sets of actors, the firm, media, and equity market, to identify and elucidate the emotions they predominantly depict in the Jaguar Land Rover acquisition. This paper’s over-arching goal is to shift the preoccupation with metrics of organizational performance to focus instead on the emotional performance manifested through organizational activities, using an aesthetic and essentially Indian performative perspective.

Profitability comparison for automobile companies in india using dupont analysis

This research paper is all about to measure and compare the profitability performance of the Automobile companies in India with respect to Tata Motors Ltd. and Mahindra & Mahindra Ltd. by using Du Pont. In this paper, researcher uses Du Pont analysis, is a method for assessing a company's return on equity (ROE) breaking it into three parts i.e. Profit Margin (Profit/Sales), Total Asset Turnover (Sales/Assets) and Equity Multiplier (Assets/Equity). To satisefy the objectives of this research paper; researcher measured the ratios of ROE and ROI applying Du Pont analysis which is demonstrated with the aid of tables to show change periodically. Du Pont analysis (ROI and ROE)) is an important tool for judging the operating financial performance. It is an indication of the earning power of the firm. The return on equity disaggregates performance into three components: Net Profit Margin, Total Asset Turnover, and the Equity Multiplier. Return on Investment consists of Assets Turnover and Profit Margin. The return on investment consists of Assets Turnover (Operating Income 1 Total Assets) and Profit Margin (EBIT 1 Operating Income). The researcher used't test for anlaysing and comapnaring previous 5 years financial data to find out level of significant change.

A case for Tata Motors' acquisition of Jaguar Land Rover: strategic implications of the takeover

A case for Tata Motors' acquisition of Jaguar Land Rover: strategic implications of the takeover

FINANCIAL RATIOS AND ANALYSIS OF TATA MOTORS

The paper investigates the financial health of Tata Motors in comparison with the Maruti Suzuki, Ashok Leyland, and SML Isuzu & Force motors for the period 2006-2016 on the aggregate market level data. Debt to total assets is approx. 60-70% which is above the average. Debt to equity ratio is moving between 1.5 to 2.2 which is bad for any company. In the case of the liquidity ratios which are very low relatively to industry. Further, earning per share, price to earning ratio, earning power & market value to book value all these ratios are below and its moving around zero. Overall Tata motors financial ratios indicates that its financial conditions are under performance. KEYWORDS: Tata Motors; Financial Ratios