Tata to skip 2018 Geneva Show – No plans for T1 Prima Truck Racing
As Tata Motors gears up to introduce Nexon for sales soon, the company is also making a concerted effort to reduce overhead costs that are hurting profitability to turn its domestic business around.
Recent years has seen Tata Motors launching a range of new models at a pace quicker than ever before by the Indian auto major. Consolidation seems to a top priority at Tata Motors now with the company streamlining its efforts on core competency. Their newfound sales opportunities and potential sales growth on the back of new car launches has seen the company announce cost cutting measures across business efforts.
Only recently, Tata motors put its TaMo project on hold. The sub-brand was created to develop aspirational vehicles unlike models manufactured for sale by Tata Motors. The first vehicle under the project, RaceMo sportscar was in fact scheduled to be launched at a later date. This was to be followed up by other vehicles.
TaMo and RaceMo no more
While things may not be binned in entirety under TaMo, in the short run the company isn’t going to stick to its initial set path. With operations scaled back, we’re still like to see the RaceMo show up here and there before the project is resurrected. The project cost was set at Rs 250 crores, and could very well be spent to revive the Tata Motors’ vehicle business.
Tata Motors’ CV business though a major player in the commercial vehicle segment hasn’t seen rapturous growth in recent days. With newer players in India, Tata Motors CV business has seen a drop in market share, as well as, profitability. With new developments it’s clear that Tata is keen on turning around its fortunes in the domestic market. Passenger vehicle sales for Tata motors has been stagnant in the last couple of years with commercial vehicles from the Indian automaker steadily losing market dominance.
Missing 2018 Geneva Show
Tata Motors has also had a booth at Geneva Motor Show for about 20 years now starting from the days of Indica. Tata Motors will not be showcasing its vehicles at the show in 2018. This would help save on about Rs 20-30 crores required to present concepts at an auto show of such repute. With no signs of vehicle launches in Europe, the effort, time and money spent to develop concepts for showing in Europe is been viewed as unnecessary, and something the company can afford to miss.
No more T1 Prima Truck Racing
Tata Motors T1 Prima Truck Racing Championship, which got underway at Buddh International Circuit back in 2014 will not return next year. The idea was to reach out to more truckers through a range of efforts, including safe driving. While aptly publicised and televised for a major public show on race day, T1 Prima Truck Racing Championship has done little to improve sales for the Prima range.
Tata Motors is also looking at cuts in take home salaries. The move also included renting economic business space. While the Jaguar Land Rover business continues to grow, Tata Motors standalone vehicle sales and business has not been that fortunate. All consolidation efforts are aimed to reduce costs and improve market share through improved sales volumes, thereby increasing profitability.