The year 2003 was extremely significant for Tata Motors, and not just because the company changed its name. The high point of an eventful 12-month period was the trailblazing debut on European roads of the City Rover, an improved version of the Indica. The year also saw Tata Motors reaching the 3-million milestone in vehicles produced. 

On July 29, 2003, the birth anniversary of founder chairman J. R. D. Tata, the company changed its name from Tata Engineering to Tata Motors. The new name reflects the company’s core business of designing, manufacturing and marketing automobiles. Less than a month later, in August 2003, Tata Motors produced its 3-millionth vehicle, reaching a landmark that exemplifies the company’s ambition and progress. 

The red-letter day of the year was September 16, 2003, when Tata Motors rolled out the first City Rover to be shipped to MG Rover, the renowned British automobile company. Speaking a few months prior to the event, V. Sumantran, who heads the passenger car division at Tata Motors, said: "This is perhaps the first time that an Indian-engineered automobile is going back overseas, and will actually be used by an upscale European manufacturer with its badge. When one thinks about how India, post independence, developed its own cars by borrowing from foreign designs, we really have turned things on its head. This is an enormous vote of confidence in the capabilities and systems of [Tata Motors].” 

There was more to 2003 for the company. It was the year in which Tata Motors launched the all-new Safari EXi Petrol, one of the most powerful sports-utility vehicles in the country. Meanwhile, the Indigo, launched in December 2002, proved a runaway hit, emerging as the best-selling car in its class. In November 2003 Tata Motors initiated the acquisition process for the Daewoo Commercial Vehicle Company, a leading manufacturer of medium and heavy trucks in South Korea.

Additionally, the company launched the 207 DI and the EX series of medium and heavy trucks. The 207 DI gained high volumes and an impressive market share, while the EX series — extended to the 407 with the launch of the SFC 407 EX Turbo — did even better. 

Financial performance
Tata Motors ended the first half of the year with profits after tax of Rs 306.9 crore, an increase of 254 per cent over the corresponding period the previous year. The company’s revenues for the same period improved by 45.3 per cent to reach Rs 5,677.52 crore. To cap it off, Tata Motors’ export volumes grew by 67.5 per cent in 2003, and export sales were 95.3 per cent more than for the same period the previous year.

The company improved its market share in both commercial and passenger vehicles in 2003. Total commercial vehicle sales in April-November 2003 increased by 43 per cent and passenger vehicle sales for the same period by 42.8 per cent. The Indica increased in sales numbers by 10.7 per cent while the Indigo maintained its market leadership position with cumulative sales for the fiscal year being 17,874 units.

Tata Motors’ passenger vehicles division made the most of increasing consumer demand, which was driven by rising incomes, lower interest rates and better financing schemes. The company’s commercial vehicles business benefited from road infrastructure development as it focused its energies towards attaining higher fuel efficiency, better emission norms, safety and comfort.

As 2004 dawns, Tata Motors is moving from a phase of consolidation to one of robust growth. While the domestic market remains of paramount interest to the company, it is looking to the international segment as a means to fuel aggressive growth that embraces organic and inorganic elements.