Tata Motor News: Tata Motors, which has reclaimed third place in India’s competitive passenger vehicle market, will remain laser-focused on high-growth segments of the industry, which have helped the company command a large market share despite having a relatively small model portfolio, according to the company’s top official.
The Tata Group flagship is no longer in a hurry to form joint ventures or enter technical collaborations, thanks to the turnaround in the passenger vehicle business in terms of volumes, market share, and brand recall, according to Shailesh Chandra, President, passenger vehicle business unit at Motors.
“Our primary focus will be on presenting in areas of the business that are seeing development and scale. That is why we have carefully picked the goods in our portfolio so that we can ride the growing wave,” Chandra explained.
Tata Motors market share increased from 4.8 percent to 8.2 percent.
As a result, despite having fewer models, Tata Motors has been able to demand a greater market share than competitors with more offerings, he noted. He explained, “It’s a more efficient portfolio.”
Tata Motors covers 63 percent of the Indian automotive market with their current lineup, which includes the Tiago, Tigor, Safari, Nexon, and Harrier. Chandra claims that the Hornbill, a subcompact SUV that will be positioned below the Nexon and will go on sale later this fiscal year, will allow the company to cover a broad market.
Tata Motors has phased out a number of old and failing platforms and models that have gone out of favour over the previous three years as part of its recovery plan. It was a wise decision.
The company’s passenger car sales increased 69 percent over the previous year, reaching 222,638 units, an eight-year record. During the same time period, India’s overall passenger car market fell by 2%. Its market share increased from 4.8 percent to 8.2 percent.
Tata Motors’ marketshare reached 10% in the first quarter of the current fiscal year.
Despite a difficult market situation brought on by the pandemic, the producer of Harrier and Nexon models has been on a roll, and the company’s marketshare increases have continued. It reached 10% in the first quarter of the current fiscal year.
Aside from the new Forever collection, the PV business’s outstanding operational performance was led by the so-called “Re-imagining initiatives,” which featured a significant emphasis on phygital (a mix of offline and online sales strategy) and a retail-focused approach, among other things.
The phygital plan included everything from using augmented reality to showcase a product’s benefits to implementing a micro market strategy to establishing a hyperlocal marketing network. It began in January of this year, and as of now, Google My Business may be used to track down about 893 dealers. As a consequence, the number of people looking for Tata Motors increased from 132 last year to 693 this year in FY21.
All of the digital initiatives have helped the firm get a lot of traction. In FY21, the number of visitors to the company’s website increased by 77% year over year to 37.8 million. According to Chandra, it has also boosted the brand’s rating to No. 2 in terms of top-of-mind recognition.
Tata Motors’ revised product range has assisted quick recovery in the PV sector and market share gains.
In a recent research study, Jinesh Gandhi noted that Tata Motors’ revised product range has assisted quick recovery in the PV sector and market share gains; it is back on pace to achieve FCF (free cashflow breakeven) by FY23.
Chandra believes that passenger car volumes (dispatches to dealers) fell 35% to roughly 600,000 units in Q1 FY22 from 930,000 in Q4 FY21 due to Covid-related interruptions. In comparison to the previous wave of the pandemic, he anticipates recovery to be slower this time.
As inquiries and retail demand increase as Covid-19 instances fade and lockdowns ease, automakers have begun to restock channel inventories across categories. Companies have been able to push shipments on pent-up demand expectations by overcoming production planning obstacles.
However, higher fuel costs and rising car prices (up 3-8 percent across segments since January 21) may affect consumer sentiment in entry-level sectors, according to Nishant Vyass of ICICI Securities in a research report published on July 2.