Tata Motors has announced that the next 18 months will see a fireworks of outputs from them. They will be launching new cars like the Nano diesel and a compact SUV in the Indian auto industry to revive their profile in the Indian auto Declining sales figures in the passenger car segment, has pushed Tata Motors to get back to the drawing board and design new cars, from the scratch.
Tata’s last big car launch came over 4 years back in the form of Nano, and their last passenger car, which managed to make an impact on the industry, was the Indica, which was launched 14 years back. Tata Motors has revealed that they will be investing $1.36 billion (Rs 7,500 crores) in the passenger vehicle segment over the next five years.
Tata Motors should have evolved naturally in the Indian auto industry, just like Mahindra and Maruti. But, probably passenger car segment was not their segment. This is evident from the fact that Tata Motors’ previous two heads were heads of their commercial vehicle segment. But Tata is shifting their focus, or increasing their focus towards the passenger car segment. Appointment of Karl Slym, is a headway in this direction.
Tim Leverton, Head, Research and Development, Tata Motors, said, “We have done something very innovative that will allow us to respond more positively. You’ll see, over the next 12-18 months onwards, a fireworks of output. The business is understanding that’s a heavy investment to make. But it needs to be made. The company is in a transitionary phase. The nature of what we have got to do over the next five years in really coming to global standards in passenger cars is a reflection of what has been happening in commercial vehicles.”