With Guenter Butschek on board, Tata Motors is moving forward with a new mission, vision, and values. This also warrants a whole new approach.
Talking to Economic Times, the firm’s MD and CEO stated that the company is conducting a study to decide on phasing out legacy products that are not selling well. He also highlighted the importance of improving commonality and economies of scale by reducing the number of platforms in both passenger and commercial vehicle segments.
The head honcho wants to focus on less number platforms and leverage these platforms to establish presence in high growth segments. He is confident that the upcoming products such as the Kite 5, Nexon, Hexa, etc., will help the company in its transformational phase.
Another important point of focus for Tata Motors is to reduce the number of vendors significantly. As of now the firm has as many as 1,300 tier-1 suppliers. Mr. Butschek said that some of the suppliers will be dropped along with the legacy products and probably won’t show up on the new supplier base.
Tata Motors is gearing up to be among the top three passenger car makers in the domestic market and top three commercial vehicle makers in the global market by 2018-19.