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Tata Motors issues statement to correct rumours, speculations and assumptions regarding company’s passenger vehicles business in Indian car market

If reports earlier in the day were to be believed, we were about to see the last of a few Tata Motors passenger vehicles in the Indian car market. This involved the company de-emphasizing their 14 year old compact car Indica and laying stress to more modern vehicles in the same segment such as the Vista. Likewise, Sumo Spacio and Indigo Marino too were likely to be axed.

The reports generated may well have been based on underperforming vehicle sales. Lower than scheduled sales do lead to falling market shares and a dip in profitability leading to any company decision to revamp their line up to something more fashionable so as to keep abreast with competition.

Tata Motors was apparently in the process of juggling some production out of their factory in Pune to their facility at Sanand. Optimum utilization of the Sanand plant would be more profitable. Tata Motors had estimated production of over 20,000 units of Nano but current sales figures have only reached the 10,000 unit mark for the first time in March 2012. Tata Motors has phased out older models in the past when they discontinued production of both Sierra and Estate models. However, current reports of the Indica being done away with so Tata Motors concentrates fuel efficient vehicles like the Vista have been refuted by the company.

In a Statement issued by Debasis Ray, Head of Corporate Communications Tata motors, Tata Motors refutes a report in The Economic Times today on the company’s passenger vehicles business.

Contrary to information in the report,

“Tata Motors does not have any plans of ‘de-emphasising’ the Tata Indica. Besides introducing the second generation Tata Indica Vista, the company has also introduced, for example, more fuel efficient Tata Indica models, like the Tata Indica eV2 which at 25 kmpl offers the highest fuel efficiency among diesel cars in India.

It is Tata Motors’ practice to continuously refresh its portfolio, driven by internal technology development and consumer needs. The company has well-articulated strategies for each of its family, comprising the Tata Nano, the Tata Indica / Indica Vista, the Tata Indigo / Indigo Manza, the Tata Sumo, the Tata Safari and the Tata Aria. They will be visible in the market place as per the company’s plans.

Tata Motors does not have any plan of producing any other car at the Sanand plant. The Sanand plant will continue to produce the Tata Nano, and the Pune plant will continue to produce the other passenger vehicles of the company.

The Tata Nano’s sales are progressively increasing with good response to the Nano 2012, expansion of the distribution network with exclusive dealers and marketing initiatives. As sales increase, the Sanand plant will reach comprehensive capacity utilisation.

Tata Motors also denies any plans for a common platform for Tata and Jaguar Land Rover vehicles.”


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