Challenging year coming ahead for car makers in India: Ratan Tata

Monday 22 August 2011, 09:39 AM by Vikas Yogi

Ratan Tata, the chairman of country's largest vehicle maker Tata Motors, has said that there is a challenging year coming ahead for the car makers in India. The statement came at a time when the country’s automakers are already struggling with a slowdown in sales.

Speaking at the 66th annual general meeting of company’s shareholders, Mr. Ratan Tata Said, “Looking ahead, I think the coming year will probably pose a considerable challenge. We all know Western Europe is going through a relative crisis in terms of currency. All this is expected to dampen the demand for passenger cars.”

The passenger car sales of Tata Motors have dipped 10.7 percent during the first quarter of this financial year. The company managed to sell 69,529 units of its cars during this period as compared to 77,858 units sold in the same period last financial year. On the other hand, the commercial vehicle sales of the company surged 13 percent during the same period.

Mr. Tata said that if government decides to decrease the spending on infrastructure, it will directly impact the sales of the company. The company is aggressively expanding the footprints of its British subsidiary in the global market.

Tata Motors is also in process to turn around the fortunes of its loss-making joint venture with Italian car maker Fiat. Speaking on the matter Mr. Tata said that “The JV was created with a certain set of assumptions. The assumption was basically that the JV would be to introduce Fiat products that we would market and we would produce products for ourselves.”