Is Jaguar Land Rover 50%, 70%, Or 80% Of Tata Motors?

As per Trefis estimations Tata Motors (NYSE: TTM) generates its revenue primarily from its Jaguar Land Rover segment which is projected to account for 73% of total revenues in 2020, while the Tata Motors’ domestic segment is expected to contribute 27% to the top line. In this note we discuss the revenue segments of Tata Motors, their historical performance and expected Total Revenue for 2020 and 2021. You can look at our interactive dashboard analysis ~ Tata Motors Revenues: How does Tata Motors make money? ~ for more details.

Tata Motors Business Model:

What Does Tata Motors offer?

• Tata Motors is one of India’s largest Original Equipment Manufacturers (OEM). The company manufactures largely under the following brands: Tata, Jaguar, and Land Rover. The company manufactures both commercial and passenger vehicles. The vehicles are sold across the globe.

Has 2 major operating segments:

• Tata Motors (domestic brand): This segment includes all the vehicles manufactured under the Tata Motors Brands. They lead in India’s commercial vehicle market with a market share of 45.1% and sales of 4,68,788 vehicles in FY 2018-19. The company’s market share in the Passenger Vehicles segment increased by 60bps to 6.3% in FY 2018-19.
• Jaguar Land Rover:  This segment includes all the automobiles manufactured by the Tata Group under these 2 iconic British brands. JLR has two major design and engineering sites, three vehicle manufacturing facilities, and an engine manufacturing center in the UK. It also has plants in China, Slovakia, Austria, Brazil, and India, with a new Battery Assembly Center to be opened in the UK in 2020.

What Are The Alternatives?

• Major competitors are companies like Daimler AG, Toyota Motors, Ford, Volkswagen, and General Motors.

What Is The Basis of Competition?

• The principal factors that determine consumer vehicle preferences include overall vehicle design, price, quality, available options, safety, reliability, fuel economy, and functionality. Market leadership in individual countries in which they compete varies widely. For how its revenue compares to its peers please visit our interactive dashboard – Tata Motors Revenue.

Revenue growth expected in 2020 and 2021 is primarily from improvement in the Domestic brand’s growth. For detailed information regarding change in pricing and volume sold, please visit our interactive dashboard – Tata Motors Revenues.

• Jaguar Land Rover’s (JLR) Revenue went up slightly by 0.9% from $32.5 billion in 2017 to $32.8 billion in 2019, and is expected to fall by 4% to around $31.5 billion in 2021.
• Tata Motors’ domestic brands’ revenue went up by 28.3% from $8.4 billion in 2017 to $10.8 billion in 2019, and is expected to go further up by 20.7% to around $13.1 billion in 2021.

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