Mistry's optimism stems from the rigorous work put in by a host of teams across the company, in order to streamline and revamp the business.
15 Sep 2016 | 6472 Views | By Shourya Harwani
Despite the various challenges that lie ahead, especially for its passenger cars business, Tata Group chairman Cyrus Mistry believes that the homegrown automotive arm Tata Motors is on track for a turnaround.
Mistry's optimism stems from the rigorous work put in by a host of teams across the company, ...
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Despite the various challenges that lie ahead, especially for its passenger cars business, Tata Group chairman Cyrus Mistry believes that the homegrown automotive arm Tata Motors is on track for a turnaround.
Mistry's optimism stems from the rigorous work put in by a host of teams across the company, in order to streamline and revamp the business.
"We identified eight strategic imperatives and set up over a hundred cross-functional teams, comprising executives from various levels in the organisation, but especially designed to ensure we gave an opportunity to our young leaders to shine," Mistry said in an in-house interview on the company's website.
"The strategy has paid dividends. The energy demonstrated by the teams and the results of their efforts have been incredible. Our journey has just begun, but we can already see the green shoots of a turnaround," he added.
Mistry said that while reviewing the passenger car product plan, it was evident that the company had challenges in aspirational design, platform strategy, and an over-reliance on diesel power trains.
"These contributed to challenges in brand perception and the health of our dealership network. Product and service quality were areas that needed strengthening," he added.
"We worked on multiple fronts to strengthen internal capabilities, and some of this work is beginning to bear fruit," he said.
A result of this revamp was the recently announced new vision statement for the company formulated by the newly appointed managing director Guenter Butschek.
Under the new mission statement labeled ‘Futuready’, Tata Motors has narrowed down its targets into three broad categories. Apart from the primary goal of improving its global commercial vehicle and domestic passenger vehicle performance, the automaker is focusing on achieving ‘sustainable financial performance’ and ‘delivering exciting innovations’.
The company plans to be among the top three global CV and domestic PV manufacturers by FY2019.
Meanwhile, Mistry also acknowledged that the competitive landscape has changed significantly over the last five years in the Indian automotive industry.
"New original equipment manufacturers (OEMs) have entered the market with contemporary products developed on lean platforms that are engineered for cost and weight. We have seen the launch of more than 50 new passenger cars," Mistry said.
Similarly, in commercial vehicles, strong global competitors have made large investments at a time when the market itself is falling, he added.
Mistry, though is confident that the company's "rich pipeline" of innovative products will reshape it going forward.
Tata Motors had showcased three new models - the Hexa SUV, Nexon crossover and the Kite 5 compact sedan -- at this year's Auto Expo and had received good initial response as well. While the Hexa is set to launch this festive season, the Kite 5 and the Nexon will soon follow suit as well.
Whether the new crop of products, a new design philosophy and the vision statement be enough to turnaround the company's fortunes, only time would tell. However, the confidence from the top management is clearly a positive indication.
Read more: Tata Motors Group’s global sales up 16% in August