The Commercial Vehicle business unit of Tata Motors has been sustaining losses and slipping away of market share in the market that is shrivelling. But, the company executives are stating that the slowdown was being cleverly used to streamline operations and work on a promising comeback strategy. The suppliers and dealers also second that.
Tata Motors’ Commercial Vehicle plants needed to run at a minimum of 50 percent capacity to break even. But now, it is said that the division can break even just by utilising 35-40 percent of the installed capacity. This is achieved through meticulous cost cutting and improvement of efficiency.
Meanwhile, the company has increased its capital expenditure for next three to four years focussing on new products and technologies. The capex hike is in the tune of Rs. 750 to 1,000 crore.
Ravi Pisharody, Executive Director and Head of Commercial Vehicle Business Unit of Tata Motors, stated that the amplitude of drop reflects also on the upswing. He explained that the company has been preparing for just that, and following the 20+ percent growth in October and November, the company would continue with the growth pace.
Tata Motors has a vast pipeline that includes new technologies for trucks and busses waiting to be let loose into the market. Tata will introduce features like Anti-lock Braking System (ABS), Automated Manual Transmission (AMT), hybrid technology, and new generation suspensions and axles, which would be capable of running for 7-8 lakh kilometres without mandatory maintenance. Alongside, the company has set a target to improve mileage of the CVs by 5 percent every year.
New launches among the 100 – 125 products will include Prima LX in 31-tonne rigid truck segment, new-look Marcopolo bus, new common rail diesel engines for Ace family and the like.
Via – Economic Times