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Cover Story

Towards a More Global Vision
The Car Maker has now set its Sights on Global Markets for its Nano and Luxury Brands.
Issue Date - 21/07/2011
The last fiscal was particularly memorable for Tata Motors, which crossed another milestone by clocking sales of one million units globally. After CEO Carl Peter Forster took over in April last year, Tata Group’s automotive business has been going from strength to strength. Profits surged by over 196.3% and PAT climbed to Rs.104.37 billion. Sales of Tata Motors small car Nano climbed to 6,515 units for May 2011 as compared to 3,550 units for May 2010. While domestic sales remain buoyant, Tata Motors has been looking beyond Indian shores to sell its wares and is actively seeking to expand its global footprint. The company’s small car Nano is already being exported to neighbouring countries like Sri Lanka and Nepal. Plans are also afoot to tap the South American, African and South East Asian markets very soon. In Europe, the Indica Vista has already been introduced in Poland and Italy, and it is now being planned for launch in Spain. At the Geneva Motor Show this year, Tata Motors unveiled the all new Tata Pixel, a car which it would design and develop to cater exclusively for the European markets. While sales of its other models may have flagged in the past three months owing to a spike in the fuel price and car loan rates, but the company remains bullish about its future sales figure. To offset the impact of rising inputs and commodity costs on the competitive pricing of its cars, Tata Motors is focusing on paring down costs. “We are focusing on cost efficiency inside the company to neutralise the impact of the increasing raw material cost to the maximum extent possible.” says Debasis Ray, Head- Communications, Tata Motors.

India’s largest automobile company is also the owner of global marquee car brands like Jaguar and Land Rover, which it has now launched in India as well. The first showroom of the iconic British luxury brand Jaguar LandRover was recently inaugurated by Ratan Tata in Mumbai. True to their pedigree, both Jaguar and Land Rover have become coruscating jewels in Tata Motors’ crowning achievements. For the record, JLR posted 481.9% growth in profits for the year FY11.

To keep its portfolio refreshed, the company has been launching new models and more desirable variants at regular intervals. Its recent launches include the new Tata Manza sedan, a newer model of its legendary Tata 407 Pick-up, the Tata Super ACE and its new truck Tata Prima. “I think they have taken all the right steps to become a global OEM. The short term challenges always remain but in long term they will to succeed,” says Abdul Majeed, Leader, Automotive Practice, PwC India. So far, Tata Motors has played its cards well, both in the domestic market and in scanning the overseas horizons. As long as its approach remains positive and its value proposition intact, the company looks set for crossing many more milestones in the days ahead.


Sanchit Verma           

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