Gross revenue for 2007-08 was Rs. 33,093.93 crores (Rs. 31,819.48 crores). Revenues (net of excise) at Rs. 28,730.82 crores posted a growth of 4.6 per cent over Rs. 27,470.03 crores in the previous year. PAT is Rs. 2,028.92 crores, an increase of six per cent.
The company’s margins were under pressure during the year due to rising interest rates, constraints in availability of vehicle financing from outside sources and unprecedented increase in input prices. The company has focused on cost reduction measures. There have been delays in the introduction of two new products, which are expected to be launched shortly.
The total sales volume, including exports for 2007-08, is 585,649 units, the highest ever of the company, compared to 580,280 units in 2006-07. The company maintained its leadership position in commercial vehicles and was among the top three players in passenger vehicles, although it lost some market share. In the domestic market, commercial vehicle sales increased by 4.8 per cent to 312,935 units and passenger vehicle sales at 218,055 units declined by 4.5 per cent.
This was a significant year for Tata Motors for the two path-breaking events – the unveiling of the Tata Nano, the world’s least expensive car, and the signing of the definitive agreement with Ford Motor Company for purchase of the Jaguar and Land Rover businesses. A number of new products were launched towards the end of the year.
Commercial vehicle introduction during 2007-08 included the new Magic and Winger range for passenger transportation, state-of-the-art low-floor CNG-propelled buses and several trucks, tippers and tractor-trailers, from 9 tonnes to 49 tonnes. These product launches would help the company regain some of its market share.
While Tata Motors’ new plant at Pant Nagar (in Uttarakhand) for the Ace and Magic range of vehicles went on stream during 2007-08, construction activity is on at Singur in West Bengal for the Tata Nano and at Dharwad, in Karnataka, for buses to be manufactured by the company’s joint venture, Tata Marcopolo Motors Ltd. The existing plants at Pune, Jamshedpur and Lucknow are undergoing expansion and modernization.
