Tata Motors rejigs business, aims to become No. 2 carmaker

Wednesday 16 January 2013, 11:09 AM by

Tata Motors, the country's largest automobile manufacturer, has commenced immediate restructuring process in its operations as it looks towards becoming the country's second largest passenger car maker in sales on domestic turf by the end of 2020. Karl Slym, Tata Motors' Managing Director (MD), is believed to be the source behind the ambitious vision. The company also aspires of maintaining a commanding position in the commercial vehicle segment of India auto market.

Tata Motors rejigs business, aims to become No. 2 carmaker | CarTrade.com
Tata Motors rejigs business, aims to become No. 2 carmaker

As per reports, Karl Slym wishes that in future Tata Motors' controls a majority share in both the passenger cars and commercial vehicle segments in the country. The MD wants both the company's vertical sectors to grow together and post impressive sales and profit margins in the near future.

At present, Slym is analysing the issues witnessed by Tata Motors' in the domestic commercial and passenger vehicle markets, besides developing a solid strategy so that both segments return positive return on investments. Sources suggest that the MD has already short listed major weak areas and is devising a strategy to ensure complete model reversal in the brand's perception and outlook among domestic car enthusiasts.

Reportedly, Tata Motors will launch new products in the Indian auto market only after getting proper feedback from customers, vendors and dealers, in the project's initial stages. The company's new management has found that Tata models suffer from poor perception of quality, limited product portfolio and obsolete looks in the domestic market, which reflects back in their recorded sales.

Accordingly, Tata Motors have directed their energy towards investing in product development with new models expected to see daylight in the Indian auto market in a couple of years. The company's primary objectives are believed to be improving customer perception of its products, besides offering superior sales and service experience to its consumer base in India.

Speaking on Tata Motors' restructuring initiates, V. G. Ramakrishnan, MD, Frost & Sullivan, South Asia, quoted, “These changes are the need of the hour for Tata Motors and they will help the company transform itself in the next 5-10 years. In the short term, the key will lie in implementation. The biggest challenge for Tata Motors is to make a cultural shift and this includes taking tough measures, which is very unlike the Group.” He acknowledged Tata Motors' new vision as a worthy one, but affirmed that such steps should have been taken a long time back.

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