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Tata Motors (TTM)

as of Sep 20, 4:00 PM EDT

16.81

0.23 (1.39%)

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TTM Topics Sales and Distribution of Vehicles:

This excerpt taken from the TTM 20-F filed Sep 30, 2008.
Sales and Distribution of Vehicles: Our sales and distribution network in India as of March 2008 comprised over 1,500 sales outlets for our passenger and commercial vehicle business. In line with our growth strategy, we formed a 100% subsidiary, TML Distribution Company, or TMLD, to act as a dedicated logistics management company to support the sales and distribution operations of our vehicles in India. We believe this will improve the efficiency of our selling and distribution operations and processes. TMLD will take over and/or set up stocking points for both commercial vehicles and passenger vehicles, in the places of manufacture and also at different places throughout India. TMLD will help improve planning, inventory management, transport management and on-time delivery. As a focused entity, we believe it will make delivery and inventory management more efficient. Additionally, we are in advanced stages of deploying a Siebel customer relations management system at all dealerships and offices across the country, which we believe is one of the largest deployments of that system in the Indian automotive sector. Being implemented in phases since 2003, the combined online customer relations management system initiative supports users both within the Company and among our distributors in India and abroad.

Through our vehicle financing division and wholly owned subsidiary, Tata Motors Finance Limited, or TMFL we also provide financing services to purchasers of our vehicles through our independent dealers, who act as our agents, and through our branch network. During fiscal 2007 and 2008, approximately 31% and 34%, respectively, of our vehicle unit sales in India were made through financing arrangements where our captive vehicle financing divisions provided the credit. Total vehicle finance receivables outstanding as at March 31, 2007 and 2008 amounted to Rs.83,588 million and Rs.76,325 million, respectively. We use a network of service centers on highways and a toll-free customer assistance center to provide 24hour on-road maintenance (including replacement of parts) to vehicle owners. We believe that the reach of our sales, service and maintenance network provides us with a significant advantage over our competitors. We also market our commercial and passenger vehicles in several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia.

This excerpt taken from the TTM 6-K filed Sep 29, 2008.
Sales and Distribution of Vehicles Our sales and distribution network in India as of June 30, 2008 comprised of over 1,500 sales outlets for our passenger and commercial vehicles business. Most of our sales outlets are exclusive Tata Motors sales outlets. In line with our growth strategy, we formed a 100% Subsidiary, TML Distribution Company (TMLD), to act as a dedicated logistics management company to support the sales and distribution operations of our vehicles. We believe this would improve the efficiency of our selling and distribution operations and processes as well as provide a faster turnaround of working capital and cash flows. TMLD will take over and/or set up stocking points, for both commercial vehicles and passenger vehicles, in the places of manufacture and also at different places in the country. It will help improve planning, inventory management, transport management and on-time delivery. As a focused entity, we believe it will make delivery and inventory management more efficient. In the South Korean market, TDCV uses Daewoo Motor Sales Corporations distribution network, the largest in South Korea. After-sales service is made available through 68 service centers and over 110 parts outlets. Exports are carried out through TDCVs own international distribution channel. Additionally, we are in advanced stages of deploying a Siebel customer relations management system at all dealerships and offices across the country, which we believe is the largest deployments of that system in the global automotive sector. Being implemented in phases since 2003, the combined online customer relations management system initiative supports users both within the Company and among our distributors in India and abroad. 59
Table of Contents

We, through our vehicle financing division and wholly owned Subsidiary, TMFL, also provide financing services to purchasers of our vehicles through our dealers, who act as our agents, and through our branch network. During fiscal 2008 and 2007, approximately 34% and 31%, respectively, of our vehicle unit sales in India were made through financing arrangements where our vehicle financing divisions provided the credit. Total vehicle finance receivables outstanding as at March 31, 2008 and 2007 amounted to Rs. 76,073.9 million and Rs. 84,536.8 million, respectively. We use a network of service centers on highways and a toll-free customer assistance center to provide 24-hour, on-road maintenance (including replacement of parts) to vehicle owners. The wide coverage of our sales, service and maintenance network in India enables us to provide quality and timely customer service.

This excerpt taken from the TTM 20-F filed Sep 27, 2007.
Sales and Distribution of Vehicles: Our sales and distribution network in India as of June 2007 is comprised of 1,200 sales outlets for our passenger and commercial vehicles business. They are managed through our eight regional offices, 24 area offices and 19 regional sales offices. Most of our sales outlets are exclusive sales outlets. We have a presence at over 2,000 customer service outlets in India, including after sales outlets. We are in the process of deploying a Siebel customer relation management system at all of our dealerships and offices across the country, which is one of the largest deployments of that system in the Indian automotive sector. Being implemented in phases since 2003, the combined online Customer Relationship Management Dealer Management initiative now supports over 15,000 users, within the Company and among our distributors in India and abroad. We believe that this will give us a significant advantage over our competitors. We also provide financing services to our purchasers through our dealers, who act as our agents, and through our branch network. For fiscal 2006 and 2007, approximately 24% and 31%, respectively, of our vehicle unit sales in India, were made through financing arrangements where our vehicles financing divisions provided the credit. Total vehicle finance receivables outstanding as at March 31, 2006 and 2007 amounted to Rs.48,464 million and Rs.83,588 million, respectively. We use a network of service centers on highways and a toll-free customer assistance center to provide 24-hour on-road maintenance (including replacement of parts) to vehicle owners. We believe that the reach of our sales, service and maintenance network provides us with a significant advantage over our competitors.

This excerpt taken from the TTM 20-F filed Sep 27, 2006.
Sales and Distribution of Vehicles: Our sales and distribution network in India is comprised of 720 dealer outlets which are supported by us through our eight regional offices, 28 regional sales offices and 38 sub-regional offices. Most of these dealers are exclusive dealers of our vehicles. We also have 2 company-owned dealerships in India. We have a presence at over 2,000 locations in India, including after sales and vehicle servicing outlets. We are in the process of deploying a Siebel customer relation management system at all of our dealerships and offices across the country,

which is one of the largest deployments of that system in the Indian automotive sector and we believe that this will give us a significant advantage over our competitors. We also provide financing services to our purchasers through our dealers, who act as our agents, and through our branch network. For fiscal 2005 and 2006, approximately 9% and 28%, respectively, of our vehicle sales volumes in India, were made through financing arrangements where we provided the credit. Total finance receivables outstanding as at March 31, 2005 and 2006 amounted to Rs.20,055 million and Rs.48,464 million, respectively, of which Rs. 130 million and Rs. 847 million, respectively, were considered doubtful. We use a network of service centers on highways and a toll-free customer assistance center to provide 24hour on-road maintenance (including replacement of parts) to vehicle owners. We believe that the reach of our sales, service and maintenance network provides us with a significant advantage over our competitors.

This excerpt taken from the TTM 20-F filed Sep 28, 2005.
Sales and Distribution of Vehicles Our automotive sales distribution network in India is comprised of our 29 regional offices, 36 subregional offices and over 500 dealer outlets. We have six company-owned dealerships, including those owned by consolidated subsidiaries, while the rest of the dealers are independent, most of whom are exclusive dealers for our vehicles. We believe that this is the largest distribution network for automobiles in India. We believe that our distribution network has been a key factor in our success in the domestic market. We deploy different sales channels for the distribution of our vehicles. In addition to the dealer outlets, we also have a strong after sales service network comprising over 650 authorized service centers. A substantial number of our vehicles are sold directly to dealers from our regional sales offices. We provide cash incentives to better performing dealers. We sell government and military vehicles as well as a small number of other vehicles directly to customers. - 28Table of Contents

End-user purchases of our vehicles from dealers are generally financed by third-party sources, including banks, development financial institutions and private finance companies. Although most end-user financing is provided by third parties, we also provide credit through financing channels to end-user purchasers through our dealers who act as our agents. For fiscal 2004 and 2005, approximately 8% and 9%, respectively, of our vehicle sales were made through hire purchase terms where we provided the credit. These credit sales are made on secured terms with a cash down payment of between 10% to 25% by the purchaser, followed by monthly installment payments for up to 36 months. Credit provided by us to end-user purchasers is extended on prevailing market terms which are at a margin over our marginal cost of borrowing and cost of operations. Until the final payment, we retain title to vehicles sold on a credit basis and are entitled to repossess them in case of default in payments. We actively pursue collection of overdue amounts, including through repossession where

necessary. We have a contractual 15% recourse to the relevant dealer for any uncollected amounts. Total finance receivables outstanding as at March 31, 2004 and 2005 amounted to Rs.8,397.0 and Rs.20,054.8 million, respectively, of which Rs.120.7 million and Rs.129.6, respectively, were considered doubtful. We have also started an information technology initiative designed to enable, distributors and us to share a common database of customers and sales and service information. This system has been already deployed across a few dealerships and service stations and its deployment at other locations nationwide is underway. We have company-owned sales and service outlets in Bhubaneshwar, Delhi and Mumbai and our consolidated subsidiary, Concorde Motors (India) Ltd., runs dealership operations in Chennai, Hyderabad and Bangalore and the Union Territory of Pondicherry. These dealerships have been patterned to meet international benchmarks and are intended to serve as model dealerships for our other dealers. We have 24-hour service centers and have established a maintenance plan called Sampoorna Seva, meaning complete service, pursuant to which we enter into annual maintenance contracts with vehicle owners. We use a network of service centers on highways and a toll free Customer Assistance Centre for providing 24-hour on-road maintenance (including replacement of parts) to vehicle owners. We believe that the reach of our service and maintenance network provides us with a significant advantage over our competitors.
EXCERPTS ON THIS PAGE:

20-F 6-K 20-F 20-F 20-F

Sep 30, 2008 Sep 29, 2008 Sep 27, 2007 Sep 27, 2006 Sep 28, 2005

RELATED TOPICS for TTM:

Competition Strategy Note1 Table Not Include Sale 209 Units 1328 Production Tata Daewoo Commercial Vehicle Limited Vehicle Manufacturing Facilities

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