Tata Motors Brilliant Strategy To Dominate India’s Auto Sector
An international Indian automaker, Tata Motors Limited is a division of the Tata Group. They include many kinds of automobiles, such as cars, SUVs, buses, trucks, pickup trucks, and military vehicles. Due to its position in the industry, Tata Motors has benefited from its marketing efforts as society’s tastes change and marketing changes with the times.
By defeating Hyundai Motor India and Maruti Suzuki India, Tata Motors has become the market leader in the small SUV class in FY22. The company’s Nexon (the internal combustion engine version) outsold Maruti Suzuki’s Vitara Brezza (114,000 units), Hyundai’s Venue (105,000 units), and Kia’s Sonet to become the best-selling small SUV (74,000 units).
About Tata Motors
|Headquarters||Mumbai, Maharashtra, India|
Tata Motors, a $44 billion enterprise, is a top worldwide manufacturer of automobiles. A wide variety of automobiles, trucks, buses, sports utility vehicles and defense vehicles are among its many available goods. In 1954, the business produced its first commercial vehicle in partnership with Daimler-Benz Az; this partnership lasted until 1969.
Next, Indica introduced the first wholly designed Indian passenger automobile in 1998. Then, in 2008, the Tata Nano, the world’s cheapest automobile, was released. Tata Motors began producing passenger cars in 1988, and it hasn’t looked back since.
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Anticipating The Demands Of The Consumer
Tata Motors acknowledges that supply-side challenges to improve and that its growth momentum will continue this year, enabling it to produce more vehicles to meet the increased demand.
The Mumbai-based carmaker, which markets the Punch, Nexon, and Harrier models, experienced a 44 percent increase in total passenger vehicle shipments to dealerships in the third quarter (October to December 2021), from 68,806 units to 99,002 units. Tata Motors is introducing additional alternatives in the mass market to increase its client base. Punch, which the firm introduced last year, is one excellent example of the company introducing products in expanding markets.
Offering New models in the regions of recent expansion. As seen by tata motors, Corporation has been doing that over the past two years and will continue to do so. The intensity of launches was perhaps among the finest in the sector. The firm has introduced SUVs and CNG trims and continues to promote electric vehicles. Every year, there will be several interesting updates to the current models or exciting new developments.
Launching EVs To The Market
The effectiveness of Tata Motors’ electric vehicles has been one of the critical factors in the company’s emergence as a car manufacturer. Tata Motors maintains the bulk of the market share in India for four-wheeled electric vehicles despite having only two Nexon EV and Tigor EV vehicles. In Q3 FY22, EV sales reached a record high of 5,592 units, up 345 percent from Q3 FY21, according to Chandra.
Tata Motors sold ten thousand electric car units in the first nine months of the current fiscal year. With 2.255 units sold last month, Tata Motors became the first company to sell 2.000 monthly EVs.Tata Motors sent 43,341 units, while Hyundai sent 42,293 units to its local dealerships.
By shipping 1.24 lakh units, Maruti Suzuki was still far ahead of the competition. In addition, 3,454 units of the Tata Nexon EV and Tigor EV electric cars are also included in Tata Motors’ dispatch.
Solving The Semiconductor Shortage
While other manufacturers continue to struggle with semiconductor scarcity, it appears that Tata Motors can manage it. This may be the source of the high demand for Tata automobiles, as they have shorter waiting times than other manufacturers. The automakers are making every effort by introducing new variations, eliminating features, swapping features, etc.
Given the impact that commodity pricing has had on the firm’s overall financials, the company will continue to work on managing the risks related to the semiconductor issue and will also concentrate on internal cost-cutting initiatives when asked if the firm sees an improvement in the supply of semiconductors.
Vocal For Local Strategy
Tata Motors also benefited from the government’s “voice for local” program. Since 2020, Tata vehicles have had a “voice for local” badge, often on the back window. Even though all automakers’ supply chains are global, a Gurgaon-based vehicle dealer for a rival automaker told FE that he has heard from customers that Tata Motors is more Indian than other Indian automakers.
The Nexon had a shorter waiting period than rival vehicles like the Vitara Brezza and the Venue last year because Tata Motors was able to increase capacity, according to Gaurav Vangaal, associate director, Light Vehicle Forecasting, S&P Global Mobility.
As a result, dealers were able to deliver the Nexon to consumers in less than three months, compared to the average six-month wait time for the Nexon last year, which was comparable to other small SUVs.
Emerging Tata SUVs
1. Curvv EV Concept by Tata
The new Curvv Concept from Tata was unveiled. Based on their second platform generation. Therefore, it is a significantly altered version of the current ICE platform. It will first be released as an electric vehicle (EV), later with internal combustion engines. It has a coupe SUV design language. By 2023 or 2024, the firm plans to introduce the coupe-style SUV.
It is built on the Nexon X1 platform. However, significant revisions have been made. They were able to increase the wheelbase and the battery space thanks to this. The estimated driving distance is 400 kilometers. Tata has previously stated that the SUV would closely resemble the prototype in appearance.
2. Avinya EV Concept by Tata
Avidya EV is the name of Tata Motors’ most recent concept. It is based on the “Born Electric” Gen3 platform from Tata. The Gen3 platform was created from the bottom up with electric cars in mind. The first vehicles built on this platform will be on sale in 2025 and will have a 500 km driving range.
Tata said they did not include an entertainment system because they believed that voice commands would eventually control everything. The Avinya EV was created with three considerations in mind. They had an innovative design, pure EV platform, and revolutionary technology. The Avinya EV will be 4.3 meters long, and thanks to the new platform, there will be enough room for all passengers.
Tata Motors, ahead of Maruti Suzuki, is now India’s second-highest selling carmaker, surpassing Hyundai. Tata Motors sold 43,341 passenger cars, compared to 42,293 sold by Hyundai Motor India. In a similar month last year, the total number of passenger vehicles dispatched to dealers increased by more than double to 43,341 units. Similarly, domestic and commercial vehicle sales increased significantly last month, jumping from 9,371 to 31,414 units.
Since the introduction of PV and EV domestically combined, this is the company’s highest-ever monthly sales, driven by solid dispatch of Nexon, Harrier, and Safari. The giant automaker also recorded dispatches of electric vehicles at an all-time high.
Is Maruti Suzuki superior to Tata Motors?
● Tata Motors is, without a doubt, the market leader in the commercial vehicle sector. India’s passenger EV industry likewise holds a dominant market share.
Is Tata Motors getting better?
● Prices for commercial cars would rise by 1.5 percent to 2.5 percent, thanks to Tata Motors. According to Tata Motors, the increase will apply to all commercial vehicle models, with the quantity varying by model and version.
Tata acquiring Hyundai?
● In December, Tata overtook Hyundai.
Tata Motors surpassed Hyundai, or not?
● In December 2021, Tata Motors surpassed Hyundai Motor India to reach second place in the domestic market for selling passenger cars (PV).