The almost dismal situation at Tata Motors (TaMo), the group’s flagship, has not changed much ever since the retirement of Ratan Tata. The road to recovery is still far away, feel some experts.
But Mistry, Tata’s successor at TaMo, is seized of the sullen mood among the company’s dealers.
He spares no effort in sustaining their hopes for a better morrow. “The situation is very difficult. The dealers are not happy. However, Mistry spoke to TaMo’s dealers and assured that the situation will change,” said a dealer, who did not wish to be named.
Despite the strong performance of Jaguar Land Rover or JLR, TaMo’s UK-based luxury car manufacturer, domestic operations continued the poor show on account of slowdown in the passenger vehicle and commercial vehicle (CV) segments and high competitive intensity. TaMo’s India business reported a (standalone) loss of Rs 804 crore in the second quarter of this fiscal.
Under Mistry’s leadership, Tata Motors continues to remain the market leader in the CV space, despite the entry of new players. But volumes have been struggling due to the overall slowdown in the segment.
The company’s passenger car business unit has been one of the larger areas of concern with its market share declining amid higher competitive intensity. Reviving the Nano’s sales is yet another challenge for the company.
Having identified the need for launching newer products and platforms in the passenger car segment, TaMo has already cleared the pipeline of products until 2020. The company will start with the launch of some of the new products from next year onwards.
At the 68th annual general meeting of TaMo, Mistry addressed the challenge of meeting the desired volumes of the small car Nano. He said the company is working towards adding new features to the car and changing the perceived value of the vehicle. “We are focusing on making it a smart city car,” he had said.