Gearing up to launch the all-new compact sports utility vehicle Nexon Tata Motors said today that it aims to nearly double its market share to more than 10 percent.
In a presentation made to the shareholders at the 72nd annual general meeting of the company, it stated that a 5 percent increase is targeted not just in passenger vehicles but also in commercial vehicles.
The company did not disclose the time frame by when it intends to reach the stated target of the market share in the PV business. However, for the CV business, the target will be met this year.
While the upcoming Nexon, which will compete against the Maruti Suzuki Brezza and Ford Ecosport, is eagerly awaited by the market there are several other passenger vehicles planned by the company in the coming months. Among them are a premium SUV and a premium compact hatchback.
In the last six years, the company’s market share fell to 5.2 percent last year from 13.1 percent recorded in 2011-12. Products such as Nano, Zest, Bolt, Indigo CS, Sumo Grande and Aria have failed to make a mark.
The company ranks fifth in the passenger vehicle behind Maruti Suzuki, Hyundai, Mahindra and Honda, in that order. Last year the company posted a rise of 23 percent in PV sales to 161057 units last year while the April-June quarter saw volumes growing 3.5 percent to 36,244 units.
“In the domestic passenger vehicles business, we have improved our market share, but the costs have been going up due to investment in our current and future portfolio,” Chandrasekaran to shareholders.
Launched last year the Tiago hatchback has generated volumes which are more than half of the company’s total domestic volumes, followed by the Tigor, which was launched a few months ago.
The PV business generates 3.4 percent of Tata Motors total revenues while at the standalone level it commands a share of 20 percent. The company would be investing Rs 2500 crore in the PV business this financial year. In the medium-term Tata Motors looks to up its ranking to three.
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