Tata Motors readying small, big UVs...

Tata Motors, the country’s largest automobile manufacturer, plans to introduce new products in all segments of utility vehicles (UVs) in a bid to address the growing demand for bigger vehicles and freshen up its portfolio.

“I can’t disclose anything for future, but you can be sure that we are working on all sorts of UVs in all segments and compact SUV (sports utility vehicle) is playing a vital role,” a top company official told DNA Money.

The official did not disclose the timeline for launch of the new vehicles, but said the company is looking to bring them in “soon”.
The passenger vehicle industry is already skewing  towards bigger vehicles, with new launches like Maruti Suzuki’s Ertiga, Renault Duster and Mahindra and Mahindra’s XUV 500 clocking huge numbers.

Tata Motors has not been able to tap this segment well so far, despite having a large portfolio of UVs and SUVs. Now, it is gearing up to take competition head on.

“We have been working on a new range of products for at least a year, since I have joined here. We are intensifying the process,” said Karl-Heinz Servos, project director – joint projects, engineering research centre, Tata Motors.

“We are looking to have a car or product where people can get into from two wheels (two-wheeler or a small car) right into a UV. When you have a two-wheeler or a small car, you aspire for better. What we have to work on are affordable UVs. Whether they will be small is a question, but more small is more affordable,” said Servos.  

Tata Motors is also considering a compact SUV, which most automakers are looking at today. M&M’s compact Quanto has already received 5,000 bookings in three weeks, while other manufacturers like Ford India and Maruti Suzuki are also planning to introduce sub-4 metre SUVs in the next few years.
“India needs compact cars. Compact cars give you better fuel economy; give you less space but are more affordable. So we will have to move into this segment,” said Servos.

The company is looking to catch up with competition quickly. “Competition will intensify. Time to market is important and we as a company understand that. We need to think of the idea and work on it because you need to be in the market when the trend starts,” said Servos.  

For September, sales of Tata Motors’ passenger vehicles stood at 21,652 units, down 18% year on year. For the company’s Sumo, Safari, Aria and Venture vehicles, sales for September totalled 4,519 units, down 15% year on year, though on a cumulative basis, their sales for the current fiscal were up 11% at 25,053 units.