The much awaited Q3 result of auto sector is here. The Tata Motors declared a jaw opening PAT of 4804.9 Crores as against 3542 Crores last year. At time when auto sector is riding on bumpy road Tata Motors has done a great job. As per SIAM(Society of Indian Automobile Manufacturers), the April-Nov. sale of passenger vehicles in FY 13-14 dropped by 5.34% as against same period in previous year.
So what did they do? Here is the Story.
Going back in 2012 when people started looking Nano as failure, Tata Motors appointed Ranjit Yadav as president of passenger vehicle business. He is the man who made Samsung grab 45% market share from just 8% in 3.5 years. Yadav not only worked to change Nano's image as a cheap car but also to enhance customer satisfaction. Since he has taken over charge, Tata Motors has jumped from 12th to 7th place in JD Power ranking for customer friendliness. Tata Motors is to launch a compact sedan and hatchback in 2014 and a new vehicle in each year till 2020. This is a very good news for market which did not see any big launch from Tata Motors for a long time.
Jaguar Land Rover(JLR) also contribute to Tata's appreciable prformance to a great extent. They have successfully implemented product diversification strategy in JLR. It starts from the launch of Evoque, after which a series of product launches followed including Freelander, Discovey 4 and Range Rover Sports and recently the F-Type. JLR has successfully penetrated the Chinese market. Due to increase in demand JLR has entered into agreement with state authorities to open manufacturing facility worth £240 million for a capacity of 24000 units in Brazil by 2016. Jaguar has topped the JD Power ranking for Sales Satisfaction Index - Luxury. Apart from these, Tata has also developed new turbocharged petrol engine Revetron. This engine is considered to be quieter and low on maintenance. This is a wise step because the price gap between petrol and diesel is getting lesser every year.
But still there are tough competitions from Maruti, Hyundai and Toyota. Maruti has recently regained its 40% plus market share due to high rural sales in India. So it will be interesting to see whether Tata Motors will continue to perform well in near future.
Jaguar Land Rover(JLR) also contribute to Tata's appreciable prformance to a great extent. They have successfully implemented product diversification strategy in JLR. It starts from the launch of Evoque, after which a series of product launches followed including Freelander, Discovey 4 and Range Rover Sports and recently the F-Type. JLR has successfully penetrated the Chinese market. Due to increase in demand JLR has entered into agreement with state authorities to open manufacturing facility worth £240 million for a capacity of 24000 units in Brazil by 2016. Jaguar has topped the JD Power ranking for Sales Satisfaction Index - Luxury. Apart from these, Tata has also developed new turbocharged petrol engine Revetron. This engine is considered to be quieter and low on maintenance. This is a wise step because the price gap between petrol and diesel is getting lesser every year.
But still there are tough competitions from Maruti, Hyundai and Toyota. Maruti has recently regained its 40% plus market share due to high rural sales in India. So it will be interesting to see whether Tata Motors will continue to perform well in near future.
