Tata Motors plans to drive in new models, expand its sales network as it aims to maintain its double-digit market share in the highly competitive domestic market, as per a top company official.
The auto major, which sells models including Nexon, Harrier, and Safari, has clawed its way up to over 10 percent market share in the passenger vehicle space in July this year after a span of nine years and now plans to hold on to it with a slew of measures.
To bring additional volumes and bring more customers to its fold, the company plans to add around 250 sales outlets by the end of the fiscal.
“Already four months are over and we are at a market share of 10.3 percent. Still, we have two big launches lined up, including the Hornbill, so that is still to come. Besides, we are continuously coming up with exciting interventions in the existing portfolio. So we are quite confident of maintaining this position,” Tata Motors President Passenger Vehicles Business Shailesh Chandra told PTI in an interaction.
When asked if the company expects to sustain the double-digit market share going ahead, he said: “That would be our aspiration.”
Chandra noted that from doing around 11,000 units per month last year the company has reached 30,000 units this year and this turnaround has been possible due to a series of actions across marketing, planning, and production.
“Important part is that we have been able to service the demand which we have been able to generate with a slew of measures,” he said while adding that the company has been able to manage the supply chain issues through strong teamwork.
Chandra said that the company has been able to build a comfortable inventory for the festive season as it would not like to lose the retail opportunity.
“Demand has quite recovered from the COVID second wave. We have seen progressive recovery and we expect the upcoming festive season to be quite productive for the entire industry,” he noted.
Chandra listed the third wave of COVID-19 and semiconductor shortage as some of the challenges which could derail the process.
On sales network expansion, he stated that the company would be adding another 200-250 outlets in the current financial year.
“At the start of FY21, we had 750-800 outlets, today we should be around 920-950 outlets and we are continuously adding to this network. Hopefully, this financial year we will be adding another 200 to 250 outlets to support the growth we are witnessing,” Chandra stated.
He noted that the company is taking various measures to improve the customer experience at the dealerships.
The automaker is aiming at a massive transformation in this regard, Chandra said.
He admitted that the profitability of the dealers was an issue earlier but now that is almost sorted.
“Almost 90 percent of our dealer partners are now profitable and that is driving a positive change at the sales network,” Chandra said.
On new product launches, he said the Hornbill would be launched sometime this calendar year along with an electric vehicle which would be hitting the road soon.
Amid the COVID-19 crisis, the company envisaged a series of actions that led it to perform better than its peers.
Chandra said the company came up with a business agility plan to minimize the impact of disruptions amid the second wave of COVID-19.
Apart from taking care of its own internal operations, the automaker also pitched in to help its business partners through a series of initiatives.
“The senior leadership developed scenarios as to how things could pan out … and accordingly we planned our actions in a manner that despite the inevitable volume reduction, we still tried to secure industry-leading sales and financial performance,” Chandra said.
The company also looked at cost reduction measures during the challenging period, he added.