In 2010, the world as a whole continued on a path of moderate economic
 recovery, but with dramatic differences between major geographic
 regions.
 
 In the western hemisphere, the U.S. showed distinct signs of GDP growth
 at 2.8% in 2010, although job levels and home mortgage figures did not
 improve. Western Europe and the U.K. were marginally positive at 2% and
 1.3% respectively. In striking contrast, Asia registered a growth rate
 of 9.5% led by China and India at 10.3% and 8.5% respectively. In Latin
 America, Brazil registered a robust growth of 7.5% and South Africa
 registered a very respectable growth rate of 2.8%.
 
 The figures of growth and economic activity re-affi rm that the hub of
 sustained economic growth has shifted from the developed nations in
 North America, Western Europe and the U.K., to the newly-developed and
 developing countries in Asia, Latin America and Africa, where the
 domestic market demand for goods and services is increasing, where the
 cost of skilled labor is low, and where newer production facilities are
 not burdened with high legacy costs. Further, the astronomical rise in
 natural resources has given some of the resource-rich nations in the
 developing world a new-found position of global dominance in sourcing
 to the developed manufacturers of the west. Whatever may be ones
 future view, one would have to accept that investments in new
 technologies, manufacturing facilities and skills development will most
 likely be in that part of the world where large population-driven
 markets have developed, and that more and more highly competitive goods
 and services will emanate from such locations for export to the
 established markets of the developed world. As boundaries and barriers
 become less meaningful, skilled labor, research and development and
 supporting infrastructure will tend to be relocated in these new
 emerging locations in Asia and Latin America.
 
 Tata Motors Limited
 
 A good example of these recent global shifts is the case of passenger
 cars. In 1955 the United States was undisputedly the largest
 manufacturer of automobiles. It produced 7.1 million cars Rs.70% of world
 consumption. Detroit was the center for most important new automotive
 technologies in terms of new features, new materials, process and
 manufacturing innovations. By 1960, the U.S. ceded its technical
 dominance to the European carmakers which could develop and deliver
 more attractive cars of higher quality at competitive prices. By 1980,
 Japan and later South Korea became serious competitors to the Europeans
 and began to take a larger share of the U.S. market by producing more
 appealing, higher quality and technically innovative cars at
 competitive prices. The landscape in 2010 has dramatically changed
 again! China has emerged as the worlds largest automobile producer.
 Its production of 13.8 million cars in 2010 accounted for 24% of world
 production, surpassing the U.S., which produced only 2.7 million cars1
 – 5% of the worlds production. Further, China has emerged as the
 worlds largest domestic market for automobiles (In 2010 Chinese buyers
 bought about 18 million automobiles, against 11.7 million bought in the
 U.S.). Even after the economic meltdown in 2009, China and India saw
 45% and 26% growth respectively in their domestic automobile markets
 while Europe, U.K. and the U.S. automobile markets declined by 6%, 11%
 and 21% respectively.
 
 The global automobile industry production in 2010 stood at about 58
 million for passenger cars and about 19 million for commercial
 vehicles, registering a growth of about 22% and 38% respectively over
 the previous year.
 
 Tata Motors
 
 Commercial Vehicles – India
 
 Industry-wide sales of commercial vehicles in India during the year
 were 7,42,091 – a growth of 27.3% over the previous year.
 
 During the year, Tata Motors commercial vehicles sales achieved an
 all-time high of 4,58,828 – registering a growth of 22.7% over the
 previous year and a market share of 61%. Intermediate and heavy truck
 sales increased by 30% and several new models were introduced during
 the year. Sales of the Ace, the sub-one ton pick-up, grew 25% over the
 previous year and achieved the highest ever annual sales. The Companys
 other commercial vehicles also achieved record sales during the year.
 
 Passenger bus sales during the year also grew substantially, both
 diesel and CNG powered, and the Companys new low-floor city buses
 have been exceedingly popular in the cities where they have been
 marketed.
 
 Passenger Cars – India
 
 In the passenger car segment, the industry registered sales of
 24,66,814 passenger vehicles – a growth of 29.8% over the previous
 year.
 
 Sales levels at Tata Motors grew at only 23% – resulting in a market
 share decline of 0.7%.  Initiatives are underway to revitalize the
 dealer network and improve market share. The total Company sales, since
 it entered the passenger car segment in 1999, crossed 2 million cars.
 The highest ever annual sales were achieved during the year. Nano sales
 crossed 1,00,000 and the all-new crossover, Aria was launched in the
 second quarter.
 
 Total export sales of Tata Motors amounted to about 58,000 vehicles –
 an increase of 70% over the previous year.
 
 Jaguar Land Rover
 
 Sales of Jaguar cars and Land Rover/Range Rover vehicles have been
 extremely encouraging.  During the year, Jaguar introduced the new XJ
 sedan and a new R-series – high performance versions of the XK sports
 and the XF sedan. Sales of Jaguar and Land Rover vehicles span 140
 countries, and their market appeal has been growing.
 
 Total wholesale sales of Jaguar cars during the year were about 53,000,
 registering a growth of 11.8% over the previous year. Land Rover/Range
 Rover achieved wholesale sales of 1,90,628, registering a growth of
 30.1% over the previous year. The new Evoque is proposed to be launched
 in the current year and has attracted a very positive reaction from the
 market.
 
 Assembly operations in India have commenced for the Land Rover
 Freelander. Assembly of other Land Rover products are also under
 consideration. To optimize the synergetic strengths between JLR and
 Tata Motors in India, an examination is also underway on a joint engine
 development program which would have manufacturing facilities both in
 the U.K.  and India. The Company is also considering various options
 for assembly and localization of selected products in China, which has
 become an important market for the Company.
 
 Both Tata Motors in India and Jaguar Land Rover in the U.K. have
 extensive product development plans for cars, off-road vehicles and
 commercial vehicles, powered by regular and alternative fuels, as also
 electric and hybrid vehicles, to meet future fuel effi ciency and low
 emission requirements.
 
 Looking Ahead
 
 While 2010-11 has been a year of high economic growth in Asia, the
 quarterly growth figures in China and India have been declining. Infl
 ation rates have risen and the central banks in both countries have
 initiated measures to slow down their economies to curb inflation.
 The resulting high interest rates, tighter credit regimes and higher
 fuel costs will dampen consumer demand for a range of consumer products
 including automobiles.
 
 The quarterly growth figures in Asia have been declining during the
 year and it is expected that both China and India will register lower
 growth rates in 2011-12. There is therefore a likelihood of a general
 slowdown in industrial activity in Asia compared to the growth rates
 achieved over the past few years and possibly a noticeable drop in
 consumer demand for goods and services. Automobile sales have already
 started to decline in India. There has also been a decline in
 automobile sales in China for the first time in two years.
 
 The extent of an economic slowdown in Asia will depend on the severity
 of the anti- inflationary measures adopted. Japan, which has been an
 industrial powerhouse for several decades, will be unbelievably
 burdened in the rebuilding of the country following the terrible
 devastation caused by the earthquake and tsunami earlier this year.
 While Japan will undoubtedly succeed in its enormous reconstruction
 task solely because of the national pride, dedication and discipline of
 its people, it is expected that Japan will register low figures of
 industrial growth.
 
 The health of the world economy in 2012 and beyond will depend more
 heavily on the economic health of Asia. inflation is indeed a lurking
 enemy of healthy growth and needs to be controlled. Speculation in
 natural resources that have a signifi cant impact on the entire value
 chain of industrial production also needs to be controlled. What should
 be of concern to all is the creation of a situation where the pendulum
 swings too far in the opposite direction, causing another global
 slowdown - this time, not based on over-valued assets but on
 self-imposed fi scal prudence. It is hoped that a realistic balance
 will be achieved in the Asian countries to ensure that these countries
 continue to be the drivers of growth, innovation and prosperity for
 millions of their people as also both sources and markets for the rest
 of the world.
 
 Chairman 
 Mumbai, July 6, 2011