Tata Motors eyes turnaround


Whenever I heard Tata Motors, I used to picturize the Tata Indica hatchbacks. No other vehicles including Nano come into my mind when some one says the name Tata Motors. That is the legacy of Tata Indica. That is also the tragedy of Tata Motors. They did not have any other cars to offer. They utterly failed to understand the changing mindset of the Indian customers, when the other car makers were launching hundreds of new vehicles. This was not just the story of Tata cars, they did not do well also in commercial and passenger vehicle segments. 

It seems like Tatas have understood that neither Indica nor Nano will work with changing mindset of the Indian customers. They have also acknowledged the fact that they need to shift the gear to grow in commercial and passenger vehicle segments. Turning around the Tata motors is the need of the hour and one of the prioritized task as per the Tata group Chairman N Chandrasekaran. 


'Fortune' says Tata Motors aims to bring the turnaround in domestic business by 2019. The company is busy in restructuring the product portfolio, supply chain and organization structure to improve the quality, productivity, and cost effectiveness.


Tata motors is investing Rs 4000 crore in this financial year 2017-18 to bring new commercial and passenger vehicles. With the new products, Tata Motors is planning to capture the market for the turnaround story. 


Tata Motors CEO Guenter Butschek says the company will invest Rs1,500 crore into commercial vehicle business to regain lost ground and return to profitability this financial year. as a part of this strategy, they have shelved the manufacturing of the Tamo Racemo sports car. They are also putting a break on TaMo subdivision to cut the cost and focus on performing models. They are reviewing their projects every month to confirm the suitability of the project.


Many cars from Tata motors are lined up for the launch in this financial year. Nexon, Tiago Sports, Tigor Amt, X451, Q 501 Suv to name a few. They are planning to launch three to four new vehicle every year in coming days.


Amid these turnaround efforts of the company, the scrip was quoting at Rs 373 on today 22/08/2017, just Rs 16 above its 52 weeks low of Rs 357 in Indian bourses and Tata Motors Limited- ADR (NYSE:TTM) was quoting USD 29, near its year low (USD 28.97) at Nasdaq.  

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