Tuesday, November 19, 2013

Wednesday, November 20, 2013

Tata Motors hopes to reclaim market share with new models

Tata Motors is working on new variants of the Nano. Photo: Ramesh Pathania/Mint
Mumbai: Tata Motors Ltd, India’s largest auto maker by revenue, plans to launch two new models—a compact sedan and a hatchback—next year in a bid to arrest a decline in volumes and market share.
The new models are part of the company’s project named Falcon (5/4), saidRanjit Yadav, head of passenger vehicle business unit, in an interview on Tuesday. “These will be completely new, performance-oriented models with consumer benefits focused around driving pleasure and connectivity, and the first proof-point to consumers that there is a new Tata Motors in the passenger vehicle business,” added Yadav.
Tata Motors will introduce the two new models in the passenger vehicle business under a yet-unnamed brand after a gap of three years. The company launched the Aria in 2010.
Designed with inputs from the company’s technical centre in Europe, Tata Motors will showcase the models in petrol and diesel versions at the Auto Expo in Delhi in February and launch them later in the year.
The vehicle platform, re-engineered from the company’s existing X1 platform on which the Indica Vista and Manza models are based, will spawn many more models in the future, said Yadav.
Tata Motors also plans to export the new models to markets such as South Africa, Indonesia and Thailand. The sale in these countries, however, will start only in 2015, according to Yadav who hopes these passenger cars will help the company regain volumes and market share.
The maker of Safari and Indica models, which used to be the third largest passenger vehicle maker till the last fiscal year, lost its position to rivalMahindra and Mahindra Ltd. From April to October, Tata Motors’ sales fell 35% to 128,263 units from a year ago, according to industry lobby Society of Indian Automobile Manufacturers (SIAM). Its market share in the first half of the fiscal year dwindled to 8.98% from 13.18%.
SUMIT KUMAR SINGH
PGDM 1ST

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