With the Sumo and Safari, Tata Motors presaged by many years the rise of sports utility vehicles in India. It had promised revolution in automobile design, functionality and affordability with small car Nano. Yet, none of these products could bring in the requisite volumes to stall the company from ceding the third slot in the passenger vehicle market in India to rival Mahindra & Mahindra in the first quarter of this financial year. Tata Motors has reclaimed the position subsequently. With six new products now lined up for launch for the next one year, Karl Slym, the newly appointed managing director, tells Sharmistha Mukherjee how the company plans to go where the market is, specifically in volume segments to consolidate its presence and emerge as a strong number two player in the country
Tata Motors’ net profit has dropped for three straight quarters on back of sagging sales in the domestic market. How is the company addressing the issue?
We do have good products such as the Nano, Manza and Aria. But those are not selling as much as we would like them to because we are not there where the customers are. The capability, in terms of technology and infrastructure, is there with the company but we need to harness it and go to the market. We have to offer customers the complete package — from the right product, strategic pricing to sales and service experience. We have done that with the Manza and the Safari this week, but it is only a stepping stone. For us to keep going, we have to do this in all areas. Every product which comes out has to be a winner.
So what is your vision for Tata Motors? Where do you see the company headed once you address the issues you mentioned?
We see ourselves as a strong number two player and that is where my vision is for the short to medium term, and to eventually become number one in the long term. We need to have more presence in the volume segment, where 70 per cent of sales are from small cars. Not only that, we also need to be present in the SUV segment, where we have just introduced the Safari Storme to add to the existing Safari. The saloon area, where we launched the Manza, is another segment which will continue to show growth potential.
Tata Motors has seen no new product launches for nearly two years now. When can we expect the next set of new products from the company?
We have had 7-8 launches over the last four years. But it is true that we have not had any new product for the last one-and-a-half years. The team here has a pipeline of new products and refreshes. In the next one year there will be six new offerings from us. It will be a mix of brand new models and upgrades
Ratan Tata recently spoke about the plans to take the Nano to US. What is the status of the car’s globalisation plans?
The next generation Nano is likely to be launched in US and Europe three years from now. We would look at exporting completely, built units or assemble completely knocked down units overseas. In Europe, we already have distribution in Poland, Spain and Italy. It would make sense for us to start with these markets as and when Tata Motors decides to launch the Nano in Europe.
