Tata Motors, India’s largest auto company, is planning to rationalise its product portfolio and refurbish its presence in the auto markets of the country and several other continents. The Head of company’s Indian division, Karl Slym said the car maker is planning to introduce a new generation version of its iconic model Nano in US auto market within a span of around three years.
Reportedly, Tata Motors is dependent on its British luxury car division Jaguar Land Rover, which is helping it to offset the losses incurred in the Indian auto industry. Interestingly, Tata Motors happens to be the largest car maker in India by revenue and the new profit of the company has reduced in three straight quarters. The reason cited for this fall stated that the auto maker has not introduced a new mass market model in the last couple of years, which has significantly reduced its hold over the Indian market. As a part of this strategy, the company has launched a new generation model Safari Storme Sports Utility Vehicle (SUV) on October 17, 2012, which is expected to strike right chords with the hearts of Indian buyers.
In a press conference, Slym said, “We will continue to look for segments where there is growth, and there's a likely pruning that will happen over time as we do that with our portfolio. The foundations and the capabilities of an organisation that can do much better than what you've seen in the results are there.”
In first quarter of this fiscal, the company reported a fall of 9.9 per cent, although the market marked an overall surge of 5.2 per cent. The profits of the Tata’s Indian business reduced by 31 per cent in the last fiscal and stood at less than ten per cent of its consolidated profit, which stood at Rs. 135.17 billion.
Industry experts believe that the largest bus and truck maker of the country is witnessing a stiff competition from the overseas companies, including American auto maker Ford and German Volkswagen, as they have kicked off their operations locally. On this, Slym said, “It’s being able to provide the customer with the kind of experience that is now expected in the marketplace, that maybe his perception is he has not received in the past from Tata Motors.”
