Despite a 19% fall in domestic sales this year, Mayank Pareek, the new head of passenger vehicle business unit at Tata Motors, is confident of a recovery in demand in the coming months.
Pareek, who joined Tata Motors in September after quitting India’s largest automaker Maruti Suzuki where he spearheaded sales and marketing operation for several years, said one successful product launch can potentially change the perception about the Tata brand, which has taken a severe beating over the last many months.
“I have been in this business of brand for 30 years. One great success of a product dramatically changes the perception of the brand. We are still (a) maturing (company). Brands are not cast in stone, all it takes is one success. Tata Motors has inherent strength to build that. Last few products have not done well but that one change is required. Ache din ayenge”, Pareek said in a free-wheeling interaction with reporters.
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In August this year, the Mumbai-based company launched Zest (senior executives of the company define it as a ‘make-or-break’ model), which took 3-4 years for development.
While car enthusiasts and previous Tata Motors owners term the mini-sedan a break-away model from the rest of the Tata lot, the company has failed to capitalise on its success. Waiting period on the Zest ranges from two months to six months even as competing models from Honda, Maruti Suzuki and Hyundai are available off-the-shelf and even at a discount.
Tata Motors is banking on the marketing expertise of Pareek, who brought success to Maruti Suzuki with launches like the Swift, Dzire, Alto and Ertiga, to pull buyers back to its showrooms. He is credited for taking Maruti Suzuki to the interiors of the country, which accounts for at least 30% of its volumes.
Pareek wants to replicate the same rural success at Tata Motors, which as of today is struggling in the hinterlands. Presently, just 16% of Tata Motors' sales come from rural areas despite having the low-cost car Nano in its portfolio.
To achieve this, Pareek said he would look to tap into the commercial vehicle distribution footprint of the company, which is the biggest under its segment. Even existing gaps in the passenger vehicle distribution set up including in cities will be progressively closed with new dealerships, he said.
Pareek, who has been busy meeting dealer partners, 90% of whom he has met already, reiterated that the company is ready with its portfolio and is committed to launch two totally new models every year.
“An AK47 assault means firing of several rounds and wastage of many bullets. We are focusing on sniper fire, which has a high rate of success”, Pareek added. Tata Motors has lined up the Bolt hatchback for launch in the final quarter of this year.
The Nano has been a troubled product for the automaker, with the product failing to see a revival despite several experiments. One of the challenges for Pareek will be to bring back customers for the Nano.
Without answering specially about the challenges facing the Nano, Pareek said, “A lot depends on how you are marketing a product and appropriately segmenting it and appropriately targeting it. There is demand”.
Tata Motors domestic PV sales slipped 19% this financial year to 68,166 units. Its position in the market has also been under pressure as it slipped to fifth spot with a share falling below 6%, similar to what it was in the 1990s.