1. Leading
The
Future
Sep. - Oct., 2003

2. Statements in this presentation describing the Company’s objectives, projections,
estimates, expectations may be “forward looking statements” within the meaning of
applicable securities laws and regulations. Actual results could differ materially from
those expressed or implied. Important factors that could make a difference to the
Company’s operations include, among others, economic conditions affecting demand
/ supply and price conditions in the domestic and overseas markets in which the
Company operates, changes in Government regulations, tax laws and other statutes
and incidental factors
1

3. Presentation Outline
x Introduction to Tata Group & Tata Motors
x Growth Strategy
x De-risking The Business
x The Way Forward
2

4. Tata Group – Leading Business Group in India
x Among the prominent industrial houses of India, with a pioneering track
record of more than 125 years
x Over 80 companies with dominant presence in a wide range of businesses
such as Materials, Chemicals, Energy, Engineering, Communications &
Information Systems, Services and Consumer Goods
x Turnover : Rs 542 bn (US$ 11.2 bn) in FY03 (equivalent to 2.4% of India’s
GDP at current prices)
x Net Profit : Rs 39 bn (US$ 805 mn) in FY03
x Strong Brand Equity
x Good Business Ethics
3

5. Tata Motors – India’s Largest Automotive Company
x India’s first and only fully integrated Automobile manufacturer, with a
significant presence in Commercial and Passenger vehicle markets
x Commenced operations in 1945
x Indigenous technology development for all its products
x FY03 Financial Overview
- Highest ever Net Revenues (unconsolidated) of Rs 91 bn (US$ 1.9 bn)
- PAT (unconsolidated) of Rs 3 bn (US$ 63 mn)
- Operating EVA positive - Operating ROIC of 13.6%
- Dividend of 40%
- Asset base of Rs 41.6 bn (US$ 877 mn)
4

6. Three millionth vehicle rolled out
Milestones
200,000 th Indica sold, 500,000 th PV rolled out
Indica platform achieves break-even
Indigo launched 2003
Agreement with MG Rover for Indica exports
2002
100,000 th Indica rolled out
Indica V2 launched
2001
1998
Two millionth vehicle rolled out. 1997
Indica launched 100,000 th Sumo rolled out
1994 Tata Sumo (UV) launched
Entered the Car market with
Sierra & Estate 1991
Produced one millionth vehicle
1990
Produced first in-
house LCV Tata 407 1986
Technical agreement with Benz expired
1969
1967 Engineering Research Centre set up at Pune
1954
Daimler-Benz collaboration for CVs
1945
Incorporated as a Public Ltd. Company with a factory at
Jamshedpur for manufacturing locomotives
5

7. Wide Product Range
Trucks (2MT– 40 MT GVW) Buses (12 -60 seater) Passenger Vehicles
6

8. Maintaining Leadership In Domestic Market
Growth +30% +17%
120,000 107,438 104,414
100,000 88,865
82,564
80,000 Market share in FY03
60,000 x CVs: 56%
40,000 x PVs: 15%
20,000
0
CVs PVs
FY02 FY03
April-August, 2003
CVs: Volumes +39% Market share: 58% (+410 bps)
PVs: Volumes +45% Market share: 16% (+220 bps)
7

9. Financial Snapshot
Last 2 years
Revenue CAGR of 16% & PBT swing of Rs 10 bn
Net Revenue and EBITDA Margin PBT and PAT
Rs bn % Rs bn
100 91 15 8
5.1
80 75
68 12.5% 4 3.0
10
60 9.9%
0
40
6.1% 5 (1.1)(0.5)
(4)
20
(5.0) (5.0)
0 0 (8)
FY01 FY02 FY03 FY01 FY02 FY03
Net Revenue EBITDA Margin PBT PAT
8

10. Financial Performance – 1Q FY04
x Net Revenues of Rs 25 bn (up 43% YoY)
x EBITDA margin of 13.3% - highest in last 21 quarters
x Pre-tax Cash Profit of Rs 2.9 bn (up 125% YoY)
x PBT of Rs 1.6 bn against Rs 0.4 bn in 1Q FY03
x PAT of Rs 1 bn - highest since April 1998
9

11. Stock Price Performance
Index Rs bn
250 88 100
200 218 80
63
148
150 50 52 50 60
40 42
100 120 40
50 20
0 0
Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03
Tata Motors Mcap (RHS) Total Auto Index Tata Motors BSE Sensex
Apr 1, 2002 Sep 19, 2003 % change
BSE Sensex 3,500 4,217 +20%
Auto Index (April 1, 2002=100) 100 148 +48%
Tata Motors Stock Price (Rs) 126 275 +118%
Tata Motors Market Cap (Rs bn) 40 88 +118%
10

12. Presentation Outline
x Introduction to Tata Group & Tata Motors
x Growth Strategy
x De-risking The Business
x The Way Forward
11

13. Strategy Ladder - Turnaround
Turnaround (FY01-03)
Improving Internal Efficiencies
Further BE point reduction
Platform strategy
Customer-centric activities
Positive PBT in Car Project
Aggressive Cost reduction
Re-engineered processes
Market share gains
Organisational
transformation
12

14. Strategy Ladder – Growth Phase
New Generation Products
Capitalise on prod. dev. skills
and costs globally
Turnaround (FY01-03)
Improving Internal Efficiencies Revenue growth through
- Consolidation in domestic
market
- Significant presence
in international markets
Further BE point reduction New business activities
Platform strategy ROIC improvement
Customer-centric activities
Positive PBT in Car Project
Aggressive Cost reduction Profitable Growth (FY04-06)
Re-engineered processes Leveraging Strengths
Market share gains
Organisational
transformation
13

15. Economic Recovery
Economic Growth
x Industrial recovery
x Improvements in Capital
Equipment industry
x Normal monsoon
Indian Economy
Infrastructure Fiscal Initiatives
xStrong construction activity xBenign interest rates
xRoad Projects xRationalisation of Excise duties
Auto sector to benefit from increased Industrial and Consumer demand
14

16. India Commercial Vehicle Market
Pickups LCV Truck
LCV Bus
12% 18%
10%
(17%) (65%)
MHCV Bus (37%)
10%
(51%)
ICV trucks
6%
(28%) MCV trucks HCV trucks
24% (80%) 20% (63%)
FY03 Market size : 192,000 units No. of foreign players: 2
Tata Motors’ Market share: 56% Market share: 0.3%
Tata Motors – Leading the CV market
15

17. Road Development Programme
Dramatic impact on
Year-wise completion schedule of NHDP 1000 volumes in initial Stage
900 stage of road
development Germany
Planned length – 14,000 km 800
MHCV / m population
France
700
Truck penetration
2004 UK
2003 21%
600
Turkey
500 Spain
12% 4
400 Portugal
Australia
Russia
300 Argentina
Brazil 3
200
Completed China
South Africa 2
100 Indonesia 1
15% 0
India
2005-07 0 0.5 1 1.5 2
52%
Source: NHAI Road Density
Paved Highway (km) / Area (km2)
Between 1997 - 2002, Highway length in China increased by around 15,000 km and
CV volumes nearly doubled from 1.2 mn to 2.1mn …
….. Indicative of likely future directions in Indian market
16

18. Emerging Trends In CV Demand
160000
MHCVs 120000
80000
40000
0
FY97 FY98 FY99 FY00 FY01 FY02 FY03
HCV trucks MCV trucks MHCV Buses
100000
LCVs 80000
60000
40000
20000
0
FY97 FY98 FY99 FY00 FY01 FY02 FY03
Pickups LCV Trucks Buses
HCVs gaining strength due to lower cost of operation
Growth in Pickups indicating desegregation of load at the lower end
17

19. Tonnage Addition – More Than A Cyclical Recovery
Despite lower GDP growth, the tonnage addition in FY03 nearly equalled
the addition in last peak (FY97)
Transporters’
1.6 9% ROE continues
1.4
1.4 7.8% 1.3 to be healthy
1.2 1.2 6.5%
1.0 6%
1.0 1.0
5.1% 0.8 0.8
4.8%
0.8 0.7 0.7 0.7 5.6%
0.6 4.3%
0.5 4.0%
0.6
3%
0.4
0.2 1.3%
- 0%
FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03
Tonnage Addition (mn MT) GDP Growth
Factors behind the recovery
Economic Recovery Lower Interest rates
Market Share gains from Railways Replacement & Upgradation of Vehicles
Infrastructure Projects
18

20. Upside Potential In Bus Demand
China Bus market India Bus market
Total 701,000 822,000 1,046,000 Total 37,000 31,000 38,000
(‘000) (‘000)
1200 40
1000 71
30
800 58 344 20
25
44 17
600 276 20
247
400
631 10
410 488 18
200 14
12
0 0
2000 2001 2002 FY01 FY02 FY03
Mini Light Medium/Large Light Medium
With a geographic & population profile similar to China,
India bus market is under-penetrated
19

21. Tata Motors – Initiatives & Achievements
x MHCV & LCV segment x Pick-up Segment
– Superior range of EX series of – 207DI pickup launched in Aug’02
M&HCVs and 709LPT launched – Gained market share in high
growth segment
x Fully Built Vehicles
– Increased thrust on fully built vehicles & solutions
– Wide range of buses, tippers & other applications
– FBV volumes doubled
20

22. Tata Motors – Capturing The Upswing
x Focus on hi-performance Total x Range of Fully Built Buses
CV solutions – Contract manufacturing route
– Truck of the Future to match for body building
global standards x Non-vehicular business
– Higher GVW, power to weight – Customer Financing
ratio – Spares, Recon, AMC
21

23. India Passenger Vehicle Market
Sumo, Safari (22%)
Mid-size
Cars MUVs
Indigo(7%) 16%
13% Others
9%
Compact Mini Cars
Cars 20%
42% Indica (24%)
FY03 Market size : 715,000 units No. of foreign players: 9
(excluding MUL)
Tata Motors Market share: 15% Market share: 29%
Tata Motors’ current product range addresses 70% of the market
22

24. India Passenger Vehicle Market Potential
Growth Drivers PV Market potential
‘000 units
x Demographics 1,187
1%
GR1
x Infrastructure CA
x Economic Factors
647
x Competitive Intensity
x Technology
x Regulations
2002 2008E
23

25. Growth Drivers
China PV market India PV market
‘000 units ‘000 units
1000
1400 FY04 YTD
1200 1,121 growth 25%
800
+56% 647
1000
800 717
600
624 606
?
612
600 400
400
200
200
0 0
2000 2001 2002 2000 2001 2002 2003E
x Release of pent-up demand in 2002 x Similar conditions in India
– Price cuts by OEMs – Excise duty reduction
– Easing of Regulations – Low cost finance
– Low cost finance – Finance availability
– Finance availability – New product launches
24

26. Passenger Vehicles – Initiatives & Achievements
Indica Indigo
x Among the top two selling models in the x Launched in Dec 2002
Compact segment since mid-2001
x “Lowest Ownership cost per km” - NFO x Market leader in its segment since launch
Automotive 2002 x “Most Exciting New Car of the Year” at
the ICICI Bank and Overdrive Awards,
MUVs 2003
x Introduced “EX” & “+” series of Sumo & Safari
25

27. Tata Motors - Capturing The Upswing
Models to address all
key segments
including:
x Indica Sport x Indigo Estate
x Safari Petrol x Others
(Launched in Sep. 2003)
Supported by new technologies
26

28. Presentation Outline
x Introduction To Tata Group & Tata Motors
x Growth Strategy
x De-risking The Business
x The Way Forward
27

29. Going Global
x Near term strategy
– Strengthen presence in traditional and niche markets
• Exports volumes up 71% in first five months of FY04
– Establish regional alliances for marketing
Focussed markets identified for growth
– Re-launched CVs in Colombo and 5 other cities in Sri Lanka
Reflected in the agreement with MG Rover Group
– Intend to export 100,000+ Indica to EU over 5 years
• Shipments to begin in 3Q FY04
– Distribution of Safari & Pick-ups in EU
x Long term strategy
– Develop ”Truck of the future”
– Leverage technical capabilities for product development
Significantly expand presence in the global market
28

30. Non-Cyclical Revenue Stream
Revenue from Non-cyclical
x Exports Business in FY03
x Spares
x Vehicle Financing
x Reconditioned Vehicles / Aggregates
x Marine & Industrial Engines
13% of Net Revenue
Plan to increase it to around 20% of Net Revenue in next 2-3 years
29

31. Cost Reduction
Total Cost Reduction Cost Reduction Elements
FY01 – FY03
Rs bn
10 3.3 9.5
9 Raw
8 Mat.
65%
7
3.3
6
5
4
3 2.8
2 Interest Var.
1 25% Conv.
0 10%
FY01 FY02 FY03 Total
Total Cost reduction of Rs 9.5 bn in last three years
30

32. Lower Break-even Points
% CVs % Cars
60 95%
100
54%
50 45%
43%
80
45%
40 36% 62%
31% 60
30 54%
40 29% 44% 48%
20
10 20
0 0
FY01 FY02 FY03 FY01 FY02 FY03
BEP as % of capacity BEP as % of capacity
Capacity utilisation Capacity utilisation
31

33. Reduction In Balance Sheet Size
Rs bn 72 68 63 48 42
70 7
8
60 9
14 8
50 2 1
10 12 14 1
12 0
40 12
30
20 40 40 38 35 33
10
0
(4)
FY99 FY00 FY01 FY02 FY03
-10
Net Fixed Assets Investments Net Working Capital
Deferred Revenue Expenses Deferred Tax Assets (Net)
Avg. Asset Turnover 0.8 1.0 1.0 1.4 2.0
ROCE (pre-tax) 3.7% 2.7% -1.1% 5.4% 17.4%
32

34. Tighter Fiscal Discipline
Days of sale Days of sale
Inventory
60
Net Working Capital
48 47 50
41 41 120 112
39
40
100
77
20 80
60
0
FY98 FY99 FY00 FY01 FY02 FY03
40 33
Receivables (non-HP) 20
100 7
80 74 0
0
(15)
57
60 -20
FY98 FY99 FY00 FY01 FY02 FY03
40 29 28 25
18
20 Negative Working Capital
0 for the first time in the Company’s history
FY98 FY99 FY00 FY01 FY02 FY03
33

35. Stronger Cash Flows & Debt Reduction
Free Cash Flow Debt & D/E
Rs bn Rs bn
12 11 35 1.27 1.4
30 1.2
10
25 0.94 1
8 7
6 20 0.8
6 30
15
15 0.6
23
4 0.56
10 0.4
2
5 0.2
0 0 0
FY01 FY02 FY03 FY01 FY02 FY03
Debt D/E (adj.) - RHS
34

36. Presentation Outline
x Introduction to Tata Group & Tata Motors
x Growth Strategy
x De-risking the business
x The Way Forward
35

37. Leveraging Our Strengths
Global scales in
CVs
Distribution network Integrated & cost
competitive mfg.
& service reach facilities
Advantage
Tata Motors
Partnerships for Excellent R&D
components/ capabilities
aggregates
Low cost product
development
capability
Backed by TATA Brand
36

38. The Way Forward
x Domestic demand drivers in place – Capture advantage of CV
uptrend and growth in PVs
x Expand presence in global markets
x Reduce interest cost
x Explore further opportunities for cost reduction
x Disciplined capex programme
x Better working capital management
37

39. Tata Motors
Combining capabilities and cost advantage to emerge as a
world class automotive company
Leading the future ……
38

40. Thank You
Visit us at www.tatamotors.com
39