Tata Motors comeback from the brink
Forbes reports after the success of Tata Indica and Tata Nano ( world’s cheapest car), Tata Motors stagnated. It has turned around after a…
Forbes reports after the success of Tata Indica and Tata Nano ( world’s cheapest car), Tata Motors stagnated. It has turned around after a decade of going downhill.
Going downhill:
In 2007 Tata Motors had 17% marketshare. When they launched Nano, it came down to 14%. After that it has come down to 4.6% in 2016.
Tata Motots had issues with quality, cost, and missing products. They sold Indica, Indigo and Manza on the same platform.
They had moved into the taxi market. Personal buyers hesitated buying their cars.
Turnaround: Thanks to Cyrus Mistry
Cyrus Mistry appointed Butschek its CEO in 2016. He had earlier worked as COO at Airbus.
He used ‘six angles of attack’ to bring radical changes such as lowering costs, focussing on customers , new technologies, and a leaner team.
He introduced Alpha and Omega platforms to launch new cars such as Tiago and Harrier. Tata Motors will be launching 12 new models.
The New Tata Motors:
Market share has gone up to 7%.
In FY 18 Tata Motors sold a total of 184,743 passenger vehicles, which was 20% more than the previous year.
are 3rd in the market, behind Maruti with 50% share and Hyundai with 15% share.
Why it matters for local businesses of Delhi-NCR?
Local businesses can outperform foreign competitors, who have better products. The key is to know the needs and behaviours of your customers.
Dig deeper:
- Avoid marketing myopia