Ad Here  
August
September
October
November
December
January
 
 
Sivasankaran enters taxi space to take on Uber and Ola Back in growth mode Sundram Fasteners rejigs international A niche in FMCG business... He excels in the nuts and bolts of entrepreneurship It takes two to tango ITC – steep excise hike Tata Motors bets on new launches V-Guard launches app-enabled water heater system Bajaj Finserv – Q1: fare well Record two-wheeler sales Are they really independent? Chinese smart phones flourish in small towns too! Forging industry worried over lower supply of steel and its price AL introduces Guru & Partner E.I.D Parry (India) Ltd: another sweet year Tata Motors joins compact SUV bandwagon with Nexon Smartphone onslaught by Chinese brands L&T bags the Mumbai Trans-harbour link order M & M unveils driverless technology for tractors TN government keen on revival of operations at Nokia complex Right to privacy – now it’s fundamental! Rane targets Rs.5500 crore topline by 2018-19 Wabco launches safety system Last stages L & T set bigger ambitions in defence business A welcome initiative-even critics are recognised When small is not so beautiful… The unexpected exit Preparing for the next growth curve Tata gets 4-star rating for Zest Hyundai India achieves 7 mn production at Chennai factory L & T’s floating dock for navy Hindalco – re-rating Gamesa to set up a plant in Nellore PPP model for infrastructure development Increasing market share Welcome focus to improve rural India... Toyota and Suzuki to introduce EVs in India by 2020 L&T profit up by 11 per cent Solar installations exceed 2015 capacity in five months Housing demand revival Shriram Life clocks more than Rs.1000 crore premium in 2015-16 Titan Company – sales recovery to kick in CAPITAL NOTES ITC chairman calls for policy impetus to transform agriculture The gainers and the losers HPCL plans Rs.61,000 crore capex over 5-years Tata Motors charts investments in PV and CV businesses Nissan exit shouldn’t affect ALL Carnival Films acquiring 3000 screens pan India TVS Automobile invests Rs.75 crore in start-up firms Tata Steel, ThyssenKrupp sign MoU to merge European units Kone India eyes further growth in elevator market Is this a generation gap? Eyes strong growth in 2016-17 Dish TV – subscriber additions encouraging Daimler grows sales and share in India Ponni Sugars (Erode) Ltd: not so sweet 2012-13 LVB posts 31 per cent growth in Q1 net profit TVS Srichakra plans capacity expansion RoC in the dock... Land wars Consolidating leadership position in smartphones Vellayan is back, after 150 days Tata Motors aims to be among the Top 3 global CV & PV firm Yamaha unveils scooter boutique 29 per cent jump in TCS revenues Singur minus Nano – victory or folly? PSU non-life firms seek to protect share Aurobindo Pharmacy: good turnaround New India Assurance posts impressive show Daimler’s truck exports from Chennai cross 5000 units AL secures orders for 3600 buses IOB on turnaround path Michelin to double Chennai capacity From the toughest to the best year Hyundai to focus on SUVs and AMT variants Maruti – for young buyers Emami – a new growth mantra Smooth sailing of SAIL Ode to Ratan Tata AL wins Deming prize again TI Cycles plans retail expansion to drive sales for premium bicycles Mercedes-Benz sales continue to zoom
 
When small is not so beautiful…

Over the last four years, the sale of passenger cars by Tata Motors has fallen by more than half from around 3.7 lakh to 1.5 lakh. The great enthusiasm with which Ratan Tata expanded the car business seems to have waned. In his tenure as Chairman, Tatas acquired the British Land Rover and the Daewoo truck businesses. In quick succession, Tata Motors launched the Indica and the Tata Magic which were well received. For a few years, the sales of the Indica zoomed; it became quite popular among taxi operators. The Nano, launched with great expectations, as the Small Wonder  (borrowed from the famous VW Beetle) did not fare well. Impressed by the passion and imagination with which the Nano was launched at the Auto Expo, I ordered for two, each costing on the road around Rs. 2.15 lakh. Air conditioning was effective as also were the power windows limited to the front seats. But the absence of power steering made one feel like  driving a truck. Repair costs were high; combined with poor resale value, Nano lost its popular appeal.

Renault’s Carlos Ghosn built his Kwid on Ratan Tata’s Nano experience. The care bestowed in designing it through the combined efforts of Europe, South Korea and India, the focus on very high indigenisation (98 per cent even at the launch), tight costing and the electrifying launch contributed to the quick success of the Kwid.  This small car received a good response, with an estimated 100,000 cars booked during the first year.


Legacy issues...

Guenter Butschek, who has taken charge as MD and CEO of Tata Motors, pointed to legacy issues as among the reasons for the steep decline in interest in Tata cars. Butschek brings with him rich experience, having worked earlier with the German giant Daimler.  He headed the company’s operations in China and also worked for Airbus Industrie. His experience in contributing to the spectacular growth of the Chinese auto industry should help Tata Motors arrest its decline and revert to its earlier era of high growth in the passenger car segment.  Competition is acute from global auto leaders, notably Maruti-Suzuki, Hyundai, Toyota and Renault-Nissan. Add to these the technological prowess of Volkswagen, Ford and GM and the going would indeed be tough.

Looking back, Tata Motors could have acquired Daewoo’s Matiz facility in Noida that had better design and performance. The company could also have focused on an electric car that would help it leapfrog technology. Competing on traditional lines in the highly evolved passenger car segment is not going to be easy.  In our previous edition, we referred to the Tata Group under Cyrus Mistry re-looking at its different businesses, as did Ratan Tata in the early 1990s and deciding which sectors to focus on and excel in. Will these include passenger cars?

 

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com