Tata Motors goes in for a strategy overhaul

The Hindu Karl Slym, Managing Director, Tata Motors, with a new version of Tata Indigo eCS at the company's Pune plant on Wednesday. Photo: Paul Noronha

Automobile major Tata Motors, on Wednesday, unveiled its new customer-focused strategy to put its passenger vehicle business back on track. The new strategy — Horizonext, is to infuse growth and excitement in its passenger vehicle business where sales fell 35 per cent in 2012-13.

Addressing media , Karl Slym, Managing Director, Tata Motors, said, "we are at an inflexion point for our passenger vehicles business. The industry has been facing challenging times with flat growth last year. We do not expect any major change this year. Our goal is to move to a strong podium finish in the passenger vehicle market, and Horizonext is the next step. We are almost re-launching our entire passenger vehicle business."

8 new launches across 5 brands

The company, on Wednesday, announced eight new simultaneous launches across five brands. These include new enhanced versions of the Tata Indigo eCS, Tata Sumo Gold, Tata Nano, Tata Indica, Tata Safari Storme and CNG variants of the Indica, Indigo and the Nano. While some will be immediately available, all variants will be phased in over the next 90 days. Indigo eCS BS3 starts at Rs. 4.99 lakh (ex-showroom Delhi) while the eCS LS BS4 starts at Rs. 5.29 lakh. Tata Sumo Gold will be offered in five variants starting at Rs. 5.83 lakh while the new Tata Nano will be offered in three trims starting at Rs. 1.5 lakh. Tata Indica starts at Rs. 3.99 lakh.

The Tata Motors chief said for the new journey, the four pillars would be enhanced product focus, world class manufacturing, enhanced sales experience and enhanced service experience. The company would roll out improved dealerships across 150 dealers in 100 cities in the current calendar year. It would also launch 11 new service programmes over the next month, he added.

"The markets are down, and we have been aligning production to market conditions,'' said Ranjit Yadav, President, Passenger Vehicles Business Units, Tata Motors.

"We are confident that the new introductions and new initiatives will see traction going forward. Thankfully now, our inventory levels have come down significantly and are at a healthy one month levels,'' he added.

Product portfolioplanned till 2020

Mr. Slym said the company would like to make "new products we play in and volume segments where we are not currently in. We have a portfolio plan in place till 2020. We are not present in the segment where there has been growth like the SUV softroader and in fact are in those segments that have seen de-growth.''

In Sanand, which can make three lakh units of Nano per annum, he said that in the near future, additional models of small cars could roll out, "as Sanand has been built for small cars, and these will remain a key segment for Tata Motors going forward."