Tata Motors Faces Crisis-Like Situation: Plans Extreme Steps


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Closing FY-17 with a loss of Rs 2480 crore for the standalone entity,TATA chief has informed employees that with an extremely difficult start in the new fiscal year.

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TATA's core segment, the CV business, which is the backbone of our company in terms of profitability and revenue, is really worrisome, as we have lost market share in all segments.

In FY-17, Tata Motors’ commercial vehicle volumes increased by only 0.8%, compared with the broader industry growth of 4%

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Butschek said that there were a host of causes - both external and internal – for the company’s inability to match rivals toe to toe in the truck business
Tata Motors has set an extremely aggressive and challenging task of improving the bottom line, firmly committed to our chairman and the board, he said.

This means that it will not be business as usual; it needs disruption. It requires a single minded obsession to deliver excellence and win back our leadership in the market place
Source:ET
 
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Re: TATA Motors faces crisis-like situation- plans extreme steps

Tougher times ahead for Tata Motors, the homegrown commercial vehicles giant is facing stiff competition from Mahindra, Daimler & Ashok Leyland , more than the products, it would be the lazy attitude of the dealers that would be hitting them hard. All time lower market share is alarming for Tata motors CV division , meanwhile the growth and performance of the passenger vehicles is also affected by the CV division performance ,the racemo concept on hold could be related to this?
Tata Motors passenger division saw the steep fall & failures and loss of market share starting from 2008 Auto Expo by losing its UV shares to M&M and cars shares and volume completely to MSIL, CV division also showing similar kind of signs despite launching and planning a huge number of models.Once they lost the plot it will be very hard for TML to regain the market, hoping they are doing something to protect their turf.
 
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Re: TATA Motors faces crisis-like situation- plans extreme steps

Closing FY-17 with a loss of Rs 2480 crore for the standalone entity,TATA chief has informed employees that with an extremely difficult start in the new fiscal year.

Tata Motors has set an extremely aggressive and challenging task of improving the bottom line, firmly committed to our chairman and the board, he said.
Source:ET
In simple terms it means TATA CV division is going to fire hard working employees for the management's lack of planning and vision.[anger]
 
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I was shocked at the low CV sales for TML; how quickly (hats of to them) MM have grown past them.
Something seems to be missing at TML-We have been through these Horizon-nexts and Transformations for far too long now and the fruits of their labor seem difficult to see
I remember Ratan Tata saying looking at quarterly sales is not as good for business as longer term sales and strategy. I hope in that light TML has a good long term strategy. The Tiago and Tigor are good steps. The XL versions of the ACE family look good. Hopefully they will get back their value for money tag. They still enjoy our goodwill.
 
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Guess the management is solely responsible for this mess. I have worked in TCS and while have great respect for Tata group, their mgmt layer is as bad as our pathetic babaus of government offices. Hard working people are sucked to core and not given promotion or hikes while big mouths and a## licking guys go up the ladder.

No matter how good the strategy someone at top makes, the morons in middle mess it up and hardworking low rung staff suffer with pay cuts and layoffs.

So, unless Tata group takes real interest bottom up nothing's gonna change.
 
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Future plans of Tata Motors axed in cost-cutting drive.
1. Pulls the plug on Geneva Motor Show - will not participate in the 2018 Motor show

2. Tamo on hold - Tata Motors sub-brand Tamo has been shelved for the moment.

3. Prima Truck Racing axed -Tata Motors is also pulling the plug on the T1 Prima Truck Racing Championship which was launched with much fanfare in 2014 at the Buddh International Circuit.

4. Salary and office expenditure cuts - Aside from pulling the plug on business projects, Tata Motors had also slashed its management’s salaries.


Tata Motors standalone vehicle business (excluding JLR) has recorded mounting looses. Last fiscal the loss stood at Rs 2,480 crore, significantly higher from Rs 62 crore in the year ended March 31, 2016.

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The loss-making domestic operations of Tata Motors Ltd., having completed its business transformation exercise, has embarked on its turnaround phase.
That's imperative considering Tata Motors reported a loss of Rs 2,800 crore despite a Rs 49,100 crore sales turnover in 2016-17.

Tata Motors announced a new corporate identity, titled ‘Connecting Aspirations’ that aims to define the company “as a brand that intuitively understands people and imagines mobility in all its forms.

Bringing the fizz back into CVs - its core business

the CV business has taken a beating over the past few years. While Tata continues to be the market leader, numbers and market share have dropped considerably. In 2013-14, it had a market share of 50.23 percent; barely three years later, in 2016-17, its CV market share has fallen to 42.79 percent. As per the latest April-July 2017 CV numbers, this is further down to 40.99 percent.

Now, there is a promise of concentrated focus to turnaround the CV business
The company aims to benefit from modular platforms, reducing complexity and increase flexibility. While the overarching goal is to produce more products at lower costs, the comprehensive CV strategy involves an over Rs 1,500 crore investment across CV segments this year and annually; 20 percent topline contribution from CV exports; developing a full range of products for the defence sector; achieving operational excellence in capacity utilisation and productivity; and a customer-centric mix of SCR and EGR emission reducing technology offerings.
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Tata Motors's passenger vehicle business has been making huge losses and a lot is riding on the new crop of technology-laden products like the Tiago hatchback, Tigor compact sedan and the Hexa crossover. All three vehicles have given the company an uptick in sales as well as PV market share.

With its Advanced Modular Platform (AMP), it plans to cut the number of component suppliers from 200 to under 100. The first car to be built on AMP will be a premium hatchback (codename X451) slated for rollout in 2019. The estimated initial investment will be Rs 2,500 crore.

The company, which has a product plan ready till FY2022 to leverage the full benefits of the modular platform as well as structural cost reduction, is targeting No. 3 position in the Indian PV market.
L I N K
 
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