The Financial Year 2015-16 was one of continued global volatility
across different markets. The fall in oil prices and commodities have
had varied impact across different companies and countries. The China
slowdown continues to be an important global economic factor.
The news was more positive for India with robust GDP growth, making the
country one of the fastest growing economies worldwide. The sustained
start-up environment has also played an important role in bringing in
global and domestic investment, opening up new opportunities and also
helping to carry economic development beyond just the tier one cities.
Moreover, there is, rightly so, a greater thoughtfulness towards
investing in new or emerging companies with a greater attention to the
right business models. This is a positive sign of a more mature and
Nonetheless there remain key challenges. The continued delay of some of
the tax reforms continue to pose operational bottlenecks in a more
streamlined movement of goods and services across the country. The
shadow of NPAs continue to haunt the Indian financial sector even as
the sector is all set to grow with new financial institutions.
For the Tata Motors Group, 2015-16 was a year of mixed results but it
was important to note the return to profitability. It was therefore a
turnaround year, backed by strong Jaguar Land Rover growth despite
challenges, as well as the start of the turnaround for Tata Motors
Jaguar Land Rover continued to show strong global sales, despite the
China slowdown. It showed a strong growth in the key markets of North
America and Europe. Its strong revenue growth reflected the demand for
the new models such as Land Rover Discovery Sport, Jaguar XE and XF,
that helped the Company add new customers to both brands across UK,
Europe and North America. Jaguar Land Rover''s solid financial
performance through last year was clearly showcased by its selling more
than half a million cars in one year for the first time.
Last year, it thus produced and sold more cars than at any time in its
history. Its vehicles have received more than 140 awards for design,
technology, safety and environmental sustainability. Besides winning
the accolade of ''Best UK Employer''by Bloomberg, Jaguar Land Rover is
one of the UK''s largest exporters, with more than 80 percent of its
revenue coming from exports.
There was good news for the Tata Motors standalone business as well.
Tata Motors M&HCV business showed sustained growth for a year to lead
the turnaround of the Indian business. Within this while some segments
like the multi-axle vehicles and tractor trailers emerged as the key
growth drivers, the tipper segment also started showing signs of
recovery with demand coming primarily from coal mining regions. After
the launch of advanced new platforms like Prima and Ultra, the launch
of Signa in the last quarter of 2015-16 ensures that we lead from the
front in bringing the most advanced technology to mainstream trucking.
We expect this growth to sustain especially with the planned
infrastructure projects now getting into execution. Strong GDP growth
and consumer sentiment will also help sustain this momentum as will the
upcoming regulatory changes.
As one of the world''s largest bus manufacturers, with the most complete
range of transit vehicles, meeting every need arising from day-to-day
travel, Tata Motors continued to bring global technology for safe,
comfortable and economical travel. The Company''s push towards electric
hybrid buses and articulated buses to meet the future transport needs
for the envisaged Smart Cities got a significant validation with the
order from MMRDA for 25 hybrid buses for Mumbai''s modernistic business
hub, the Bandra Kurla Complex.
We have witnessed some encouraging growth in LCVs and will continue to
lead and grow in this space with new product introductions, also
reaching out to customers in smaller cities and towns through new sales
and service points.
2015-16 also saw a strong growth in defence as the Company transitions
from a supplier of defence logistics solutions to a design and
development company providing a comprehensive range of solutions
including armoured combat vehicles. This has opened up significant
domestic as well as international opportunities as Tata Motors joins
hands with global partners to develop solutions for defence agencies
The year was an exciting one for PV — not only did it mark the launch
of the stylishly designed hatchback Tiago but it also was the first
preview for what''s coming. Since its launch, Tiago as the first
completely new product marking the PV transformational journey has
received strong bookings and great customer response. I was also
delighted personally by the response that our new cars Hexa, Nexon and
Kite-5 received from the industry and customers at the Greater Noida
(Delhi) Auto Expo 2016. Our continued efforts towards enhanced customer
experience also bore results as we saw strong improvement in the JD
Power Customer Satisfaction Index, as we moved up to the third rank in
We are all becoming used to unpredictable and dynamic market
environments, learning to manage by anticipating customer needs,
leveraging strong processes and building competitive product portfolios
and networks. The new financial year will not be any different in the
challenges it will pose, especially as the continued sway of technology
is impacting the entire industry as consumer behaviour undergoes
significant change. The recent Brexit Referendum will also add some
uncertainty to the world of global business, but we are confident we can
see through it with careful understanding of its long-term impact and
strong robust processes to handle volatility. At Jaguar Land Rover, we
will continue to invest in a sustainable, profitable growth strategy
with a market defining product portfolio. The Company remains the
largest investor in automotive research in the UK, with cutting- edge
innovation as the key to its future growth.
For the Tata Motors standalone business, this will mark a milestone
year of growth, great launches and transformation. There continues to
be the growing pressure of competition and we will look to bring in
significant launches in PV and CV with focus on cost efficiencies to
A very important aspect of this transformational journey is the
appointment of Guenter Butschek as the new CEO and MD for the Tata
Motors standalone business. He brings tremendous global experience and
expertise as well as operational insights to lead this transformation.
I am delighted to welcome him on board.
I am optimistic about the future — it may be challenging but offers many
positive opportunities across Tata Motors and Jaguar Land Rover. We
remain committed to all our stakeholders and to the communities we work
in, for sustainable profitable growth with continual community
Thank you all for your continued support, which I gently appreciate and