Tata Motors Limited is a global powerhouse in automobile manufacturing, with a rich legacy in innovation and mobility solutions. Originally founded as Tata Engineering & Locomotive Company in the year 1945 by industrialist JRD Tata, Tata Motors has evolved over the course of more than half a century to become a flagship company of the Tata Group. Tata Motors designs, manufactures, markets and sells both passenger and commercial vehicles, including cars, SUVs, utility vehicle, electric vehicles, trucks, buses, vans and defence vehicles. In addition, the company is also involved in end-to-end mobility solutions like vehicle financing and more. Tata Motors leverages its capabilities in advanced design, engineering and manufacturing to deliver world-class automobiles and other mobility solutions. Want to know more about the company’s operations, revenue streams and other details? Let’s undertake a quick analysis.
What Makes Up The Business Model of Tata Motors?
Tata Motors operates a hugely successful business model which is rooted in diversified product portfolio, strong brand reputation, global presence and innovations in technology. This approach enables the company to maintain an edge in the highly competitive automobile industry in India and abroad.
Tata Motors produces a wide range of vehicles grouped under various categories like passenger vehicles, commercial vehicles, luxury vehicles and electric vehicles to cater to multiple customer segments. Furthermore, the company has also expanded to vehicle financing, IT services and automation solutions.
Tata Motors has long been a pioneer in automotive innovations, embedding research and development at the core of its strategy to develop cutting-edge, customer-centric technologies and solutions. The company has a network of 9 R&D centres across India, UK, US, South Korea, Thailand, South Africa and Indonesia.
Tata Motors exports its vehicles to more than 170 countries worldwide. The company’s global network comprises of 25 manufacturing facilities, including 12 dedicated facilities for Jaguar Land Rover, and over 9400 customer touch points.
| Company | Tata Motors Limited |
| Establishment Year | 1945 |
| Founder | JRD Tata |
| Headquarters | Mumbai, Maharashtra, India |
| Industry | Automotive |
| Net Worth | $14.36 billion |
| Revenue In 2024 | $52.6 billion |
How Does Tata Motors Make Money?
1. Vehicle Sales
Tata Motors earns the biggest percentage of its revenue from vehicle sales. It sells a wide range of vehicles, including passenger cars, trucks, buses and defence vehicles, in more than 170 countries worldwide. The revenue earned from vehicle sales is distributed unevenly across segments.
Luxury and Premium SUV sales under Jaguar and Land Rover brands account for 70-75% of the total revenue generated by the company. This is followed by commercial vehicles and passenger/electric vehicles.
2. Licensing and Royalties
Tata Motors licenses its proprietary technologies to other companies and earns revenue in the form of royalties from the usage of its intellectual property. This strategy enables the company to generate revenue from its innovations for long periods of time.
3. After-sales Services
Tata Motors earns revenue by providing a comprehensive suite of after-sales services. These include repairs, maintenance and part replacement. The services are available at authorised workshops. The customers are offered a number of options, including annual maintenance contract, labor-free services for a specific number of visits and extended warranty.
4. Vehicle Financing
Tata Motors generates revenue through interests on vehicle loans provided to the customers. Vehicle financing is provided for passenger and commercial vehicles, with benefits like 100% coverage of on-road price and flexible EMIs.
Subsidiaries of Tata Motors
Jaguar Land Rover Automobile PLC is a British manufacturer of luxury vehicles. Tata Motors acquired the company in the year 2008 and it currently operates as a wholly-owned subsidiary. It is the most significant subsidiary of Tata Motors and includes the Land Rover and Jaguar brands along with their sub-brands like Defender, Range Rover and Discovery.
Tata Motors Passenger Vehicles Limited is a wholly-owned subsidiary of Tata Motors. It leads the passenger vehicles segment of the company in India, owning several prominent brands like Harrier, Punch, Tiago, Safari and others.
Tata Passenger Electric Mobility Limited was established in FY 2021-22 to handle the passenger electric mobility business of Tata Motors. It owns various EV brands like Nixon.ev, Tigor.ev, Tiago.ev and others.
Tata Motors Finance Limited is a wholly-owned subsidiary of Tata Motors. It provides vehicle financing solutions to customers of Tata Motors in India.
Tata Daewoo Mobility Company Limited is a 100% subsidiary of Tata Motors. It is a South Korean manufacturer of heavy-duty trucks, buses and special-purpose vehicles.
