Segments wherein the company does not have any products, are booming and hence the need to alter the product launch strategy on a war footing. Slym, Managing Director of Tata Motors has called for new products, new features and new launches, which he feels is an urgent need to revive market share.
Slym has advocated certain short, medium and long term measures to address these problems, reports ET. In short term strategies, mild changes are called for, while new products and portfolio revision will be the long term changes that Tata Motors will be concentrating on.
Tata Motors has a strong market share where their commercial vehicle segment is concerned, currently standing at 62% but it is in the passenger segment that major modifications are required. Tata Nano was expected to generate 20,000 unit sales every month when it was launched, but they are now down to just 3k units a month (last 6 months average). Tata’s Sanand facility is filled with unsold Nano cars while production is down to just 10% of original capacity.
Slym has also slammed the Government on the recent excise duty hike where SUVs are concerned. Slym took charge of Tata Motors in September 2012 and in the past six months he has made major changes in the organization. The old management committee has been replaced by a more energetic committee consisting of 8 persons.
These consist of Ranjit Yadav as Passenger Car Head, Tim Leverton as Engineering Head, while heads of quality, purchase, finance and HR are headed by Satish Borwankar, Venkatram Mamillapalle, C Ramakrishnan and Prabir Jha respectively. This structure has been altered to the extent that each factory will now have an exclusive head for quality and purchase and one head for quality and sourcing, each of whom will report directly to Slym. By this way, he hopes that decision making will be faster and smarter while quality will be of the highest standards.