Tata Motors sees India, China as automobile growth drivers

Tata Motors, India’s largest commercial vehicle maker, is currently preparing a blueprint that will launch a slew of new models across categories in the next two years as Asia’s third largest economy gears up to face competition from global car makers in the fast growing automobile market.

“Our challenge will be to develop and produce technically-advanced vehicles for the domestic and overseas market,” chairman Ratan Tata said at the company’s 62nd annual general meeting which was later marred by an electricity failure that led Mr Tata to hurriedly conclude the question and answer session.

Some of the new launches include the new generation Indica, Indigo, Sumo and trucks, small car, a cross-over vehicle and a new pick up truck (assembled in Thailand and Latin America).

The company’s aggressive new product programme follows a growing stagnation of vehicle demand world-wide. However, India and China will be the growth drivers said Mr Tata. Passenger vehicle sales were up marginally in the last quarter at 4% to 51,840 units, commercial vehicle sales dipped by 2% to 61, 699 units affected by higher interest rates. “Our challenge in the coming years will be the ability to produce vehicles, increase capacity and successfully meet competition,” added Mr Tata.

The ambitious Rs 1 lakh car will be manufactured from Singur and completed in time despite political opposition. Construction has begun and orders for the equipment have been placed and the car will be launched by the middle of next year.

The styling and designing have been completed. “Despite all the political crossfire that’s taking place, we will bring out the car in time,” said Mr Tata. “By putting up the project in Singur, we have transformed the quality of life, prosperity and livelihood and transformed it into an oasis, said Mr Tata. The launch of the car will create a new paradigm in low cost personal transport, carve out a new market segment and reach a broader base of the pyramid, said Mr Tata.

Meanwhile, Tata Motors is drawing up plans to bring down costs. It is also focusing on expanding overseas business in markets such as South Africa, Latin America, Thailand and China to reduce the dependence on the economic cycle of any one market and focus on hybrids, fuel cells and cleaner diesel vehicles for the future.