Automobile major Tata Motors plans to start focusing on cost reduction, new products launch, and design, efficiency in supply chain management as well.
The automobile company has decided to endow Rs 4000 crore for development purposes. Out of this amount Rs 2500 will be utilized for its passenger vehicle business and the rest Rs 1500 crore will be used in its commercial vehicle business in the upcoming years.
Guenter Butschek, MD, said, The Company had been far too complacent and this allowed competitors to grow their market share. Over the past two-three years, Tata Motors, while remaining the biggest commercial vehicle maker, has lost its market share in certain segments to rivals. The company is targeting a 5% gain in market share in the CV business through a host of launches and improvement in retail, especially in micro cities.
The company currently holds the stake of 47.5% in medium and heavy CV while in the light CV division it holds the stake of 38%.
Tata Motors CFO CR Ramakrishnan said, The Company was targeting an improvement of more than Rs 1,500 crore in the bottom line at a stand-alone level. However, he refrained from specifying any timeline.