Tata Motors gearing up to stay ahead

Tata Motors’ market share for FY13 stood at 59.5 per cent and the overall CV sales were backed by a steep growth in the LCV segment. Slowdown in economic activity, poor infrastructure spending and weak macro outlook, as well as higher operating costs, adversely impacted demand in the MHCV industry. However, the company has grown and consolidated its position in the LCV segment, leading to expansion of its market share, specially in the ACE segment. With some interesting new launches in the last year, Tata Motors continues to maintain its position as the commercial vehicle market leader in India.

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During 2012-13, Tata Motors introduced several new products and variants across the traditional Prima and Construck range focusing on ‘best-in-class performance, reliability and fuel efficiency’. The newly-launched ‘Tata FleetMan Telematic Services’ is an intelligent vehicle and driver management solution.

In September 2012, the company launched the Tata Xenon Pick-up, offering both single cab and dual cab versions, with best-in-class looks, operating economics and fuel efficiency. The pick-up is suitable for a wide range of commercial applications. In September 2013, it introduced six new advanced heavy trucks and Tata FleetMan in northern India – Tata LPT 3723, Tata PRIMA 3138.K, Tata PRIMA 4938.S, Tata PRIMA 230 HP – LX range consists of the Tata PRIMA LX 4923.S & Tata PRIMA XL 4023.S., Tata LPK 3118. The new products in the pipeline this year are variants from the Prima range, the Ultra range of LCV, ACE variants, Nano variants, and refreshed car models.

During 2012-13, the company’s overseas sales were supported by markets like Nepal, Thailand, South Africa and MENA countries, while its larger export markets like Sri Lanka and Bangladesh continued to decline.

The one-tonne diesel mini-truck, the Tata Super ACE, launched in October last, is an ideal vehicle for intra-city and last-mile distribution applications in South Africa. The Tata Super ACE is a combination of new-age design, superior performance, space, comfort, safety and operating economy, delivering exactly what a transportation business requires. With the launch of this vehicle, the company now has a commercial vehicle for every need in South Africa, ranging from the one-tonne mini-truck to 56-tonne gross combination mass prime movers.

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Distribution of Tata pick-ups in South Africa started in 2004 through Accordian Investments (Pty) Ltd., a subsidiary of Associated Motors Holdings (AMH), which currently operates through a network of about 60 sales and service dealers. Tata Motors’ portfolio in South Africa now comprises 20 commercial vehicle models and three passenger car models, with over 65,000 company vehicles plying on South African roads today.

The company has a 40-year heritage in Bangladesh, having introduced its buses there in 1972. There are about 53,000 Tata commercial vehicles on Bangladesh roads. The company is today the market leader there with a 70 per cent market share.

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Outlook

External environment and overall economic activities remain stress, resulting in the overall demand remaining stressed, mainly for the MHCV segment. However, demand in the SCV segment is still strong.

Intense competition within the industry has led to higher marketing costs. However, Tata Motors continues leveraging on its traditional strengths – strong understanding of the domestic market, wide and compelling product portfolio, strong brand and customer support, expanding distribution network and economies of scale.

The company continues upgrading its vehicle models as well as value-added services and solutions for its customers. Several new initiatives are being taken in the passenger car business to improve overall vehicle performance. The company also relies on regular product refresh plans, distribution network expansion and cost-effectiveness.

Horizonext, Tata Motors’ new customer-focused strategy

Tata Motors has announced Horizonext, an aggressive customer-focused strategy for its passenger vehicles business, and has also unveiled eight newly-upgraded and enhanced products across five brands. These vehicles will soon be available at all dealerships.

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Horizonext provides the best customer experience, from best vehicle experience to superlative purchase experience followed by technology-intense after-market service support. The four pillars for this strategy are intense product focus, focus on world-class manufacturing practices, enriched customer purchase experience and consistent quality of service.

Commenting on Horizonext, Mr. Karl Slym, Managing Director, Tata Motors, said: “While the Indian automobile market has become intensely competitive, our goal is to enhance our market leadership in commercial vehicles and move to a strong podium finish in the passenger vehicle market. Horizonext is the next step in line with the company’s mission to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally. We are igniting that passion so that customers are central to us, in what we are offering in our products, in the manner we are engaging with them at our dealerships, and in the processes we have adopted in servicing their vehicles.”

As a precursor to future launches, the company unveiled eight improved and enhanced vehicles, across five of its key brands, to provide the best vehicle experience. These include new enhanced versions of the Tata Indigo eCS, Tata Sumo Gold, Tata Nano and the Tata Indica, with the additions of exciting new colours and graphic designs, enhanced exteriors, improved high-quality suspension to offer a better ride, great multimedia entertainment options and introduction of the Feather-shift gearbox.

The company has also showcased the new CNG range – Tata Indica CNG, Tata Indigo CNG and Tata Nano CNG – and the Explorer edition of Tata Safari Storme. The select variants will be phased in the next 90 days.