Synopsis–Tata Motors appears to have turned the corner – and is on course to reclaim its podium position in a market dominated by companies from maritime northeast Asia.
Mumbai: Over the past few years, the Koreans appeared to have stolen a march over Tata Motors, and the carmaker from the country’s most diversified conglomerate slid in sales rankings even as burgeoning demand for utility vehicles made India the hottest destination for several global automotive companies.
Tata Motors appears to have turned the corner – and is on course to reclaim its podium position in a market dominated by companies from maritime northeast Asia. Nexon and Altroz, two hot-selling models, have given Tata the confidence to consider doubling its local output to 4 lakh units in FY22.
If that milestone is reached, Tata Motors will likely garner its highest ever sales in India and help secure the broader goal of cornering at least a 10% market share.
With an all-new Safari and the new entry SUV H2X on the anvil, the company is telling its vendors that it will make 4 lakh units, five people aware of the company’s production plans said. But this can be achieved only if there are no major semiconductor supply disruptions.
On the Mend
From turnaround mode in 2018-2019, Tata Motors got into an acceleration mode in FY21, posting growth of 41-159% between July and December last year against industry growth of 16%. It ended the year at 8% share, the highest for Tata Motors in seven years. In FY21, Tata Motors sold 1.38 lakh units in the first nine months, equivalent to the total sales volume of FY20.
In FY22 it is aiming for a big leap of over 100% growth. Even if it sells 3 lakh units, Tata Motors will be able to attain 10% market share, and with 4 lakh units, that share may rise to 13.5%. The highest market share attained by the company was 17% in 2006, whereas the highest sales it has ever achieved was in FY-14 – at 3.68 lakh units.
“We are excited by the potential offered by the New Forever range of products and our ‘Reimagine PV’ interventions are bearing fruit,” said a spokesman. “We will continue to serve our customer needs to the best of our abilities.”
There was a change of guard at the beginning of the year, with Shailesh Chandra taking charge of the operation. An all-new refreshed product portfolio in tandem with the new way of doing business helped the company in capitalizing the need for personal mobility, which gathered momentum post covid-19. Higher incentives to dealers re-energised the network to make the most of better than expected recovery.
Aggressive pricing and differentiated positioning on safety and design helped the company gain market share, which triggered a significant turnaround of the PV business. Besides this, new models at the entry and top end of SUVs will further expand the addressable market.
Sales Headed North
A Tata Motors vendor said that the forecast volume of the top selling models such as Nexon and Altroz has been consistently increasing on a month-on-month basis. The company aims to sell nearly one lakh units each of Nexon, Altroz and Safari for the next fiscal. Furthermore, it is targeting 50,000 units each for Tigor and Tiago.
Share the joy of reading! Gift this story to your friends & peers with a personalized message. Gift Now