Wednesday, April 04, 2012
By Manoj Kumawat
Tata could drop Indica, Marina from stable, to improve sales of its cars
It seems that Tata Motors is in the process of shuffling its portfolio to make it fresh by making some critical changes. As per latest media coverage, the Indian car maker could think of throwing out less performing horses like Tata Indigo Marina and Tata Sumo Spacio out of its stable. The decision will not affect the overall Tata car sales as these models still are not adding numbers. In March, the top performers were Tata Nano and Tata Indica Vista. Tata is said to be thinking of decommissioning its flagship car Tata Indica from its fleet as it has been already replaced by an improved version Tata Indica Vista. Tata has earlier shunned under performing cars such as Tata Sierra and Tata Estate models.
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If we go by figures, 2010-11 remained the brightest period for Tata when the industry grew by 29 percent and Tata registered a growth by 27 percent though its market share marginally decreased. Presently in 2011-12 when the industry is expected to grow by 3 percent (as per the data till February), Tata Motors could grow by only 2.1 percent with a further loosening of the grip over the market share. Thus, we can see that Tata is gradually loosing the market share each year. The reason being more competitive brands such as Volkswagen, Hyundai, and others coming in.
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Alongside, Tata could also be thinking of furthering marketing and exports of Tata Nano in order to fully utilize the 2.5 lakh cars units capacity of the Gujarat plant. Another possibility is that the car maker could shift some products to Gujarat as well. In this period, Tata subsidiary Jaguar Land Rover seems to be its savior as the LR is developing a two litre engine that could be used in Tata cars such as Tata Safari and Tata Aria. In addition to this, it is also expected that Tata and JLR could also float a new marquee that will share platform and technology of the two.