Tata Motors has to race ahead of M&M: Ratan Tata

The Tata head honcho revealed that he was sad and ashamed that the company has lost out to its rival, reports CNBC-TV18's Sunanda Jayaseelan.

At the 67th AGM of Tata Motors, Ratan Tata, who has been on the board as executive chairman since 1988 and non-executive chairman since 2001, outlined his vision for Tata Motors.

His address emphasised on competition, especially from Mahindra & Mahindra and said that he was both "sad and ashamed" that Tata Motors has conceded its market leadership to Mahindra & Mahindra. Ratan Tata explained that it was critical that the position of market leadership was regained across all brands and segments going forward. "Failure to do so would be bad for the company," he said.

Ratan Tata also said that with increase in petrol prices, diesel engines were the future. He said that Tata Motors could possibly look at plans to produce an engine for JLR in India and Tata Motors could offer brands at different price points, going ahead.

He said that he hoped Tata Motors would be able to sell over 2 lakh units of the Nano to ensure the company reaches its target audience. Ratan Tata revealed the acquisition of Spanish bus brand Hispano and pointed out that the fluctuations in the Spanish economy would determine if the brand was worth owning.

Ratan Tata concluded his address with the mention of successor Cyrus Mistry, who is set to take over at the helm, at the end of the year. He said that he is confident Cyrus will take the company to greater heights as he possessed the right qualities and values.