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MOTORINDIA
l
September 2012
units in 2010-11, thanks to im-
proved performance in the pick-up
segment and ramp-up of production
at the Pantnagar plant. Commercial
production has commenced at Dhar-
wad. The major launches in 2011-12
were the Ace Zip and Magic Iris.
Uptrend in the Tata Ace sales con-
tinued.
However, the entry of new players
in the small commercial vehicle cat-
egory and the expanding market size
in this segment resulted in lowering
of the company’s market share in
the LCV segment to 59.4 per cent in
2011-12 from 62.1 per cent in 2010-
11. In the M&HCV category, the
company sold 207,086 units during
2011-12, marking a market share of
59.4 per cent. The economic crisis
in the Euro Zone and political unrest
in the Middle East led to a global
slowdown. The real GDP growth
in the Euro Zone dropped succes-
sively in every quarter of the year.
The SAARC and ASEAN countries,
however, continued to grow stead-
ily. In particular, the growth in the
small commercial vehicle segment
in these geographies was robust.
The new launches during the year
included the Tata Divo, a super-lux-
ury inter-city bus, and new variants
in the Tata Starbus Ultra range.
Stiff competition ahead
The company faces competition
from various domestic and foreign
automotive manufacturers in the
Indian automotive market. Improv-
ing infrastructure and robust growth
prospects compared to other mature
markets are now attracting a number
of automotive OEMs to India. These
companies have either formed joint-
ventures with local partners or have
established own operations in India.
The global competitors bring inter-
national experience, global scale,
advanced technology and significant
financial support, for the operations
in India. The competition is likely to
further intensify in the future.
The company has designed its
products to suit the requirements of
the Indian market based on specific
customer needs such as safety, driv-
ing comfort, fuel efficiency and du-
rability. The company believes that
its vehicles are suited to Indian roads
and climate and comply with the
current environmental regulations
in force. The company also offers
a wide range of optional configura-
tions to meet the specific needs of
its customers. It is also developing
products to strengthen its product
portfolio in order to meet customer
expectations.
Indian market outlook
The Indian economy is likely to
grow moderately at 7.6 per cent. In-
put costs continue to remain under
pressure from increasing commod-
ity prices. With higher intensity in
the competitive scenario, pricing
power remains limited and mar-
gins are likely to be under pressure.
Against this backdrop, Tata Motors
will continue to focus on providing
new products and solutions to the
customer with a view to reducing
the total cost of ownership. Along
with initial acquisition price, the fo-
vehicle zone (cover story)
With a view to maintaining its advantage of reach and penetration, the
company will also expand its sales and service network with its focus on
upcountry markets. Aggressive cost reduction continues to be a focus area
to offset the increased input costs and continuously improve margins. The
company is also actively pursuing opportunities in international markets,
including the possibility of CKD and SKD assembly to offset high import
costs.