Tata Motors is not only India’s largest automobile company with consolidated revenue of Rs. 1,23,133 crores ($27 billion) in 2010-11 but is also currently the second largest bus manufacturer in the world. The company’s sustained bid is to become one among the top three global truck manufacturers. With slack growth in the European auto industry, it is not that difficult for India’s popular and trusted commercial vehicle brand to become the world leader in the coming years. The company, with indigenised technology, has several milestones to its credit. It is also one among the few Indian firms with global operations covering the UK, South Korea, Thailand and Spain.
In an exclusive interview to MOTORINDIA, Mr. Ravi Pisharody, President - Commercial Vehicle Business Unit, Tata Motors Ltd., explained how the company is working out its strategy to tackle the mounting competition from rivals in the field and expand Indian and overseas operations, undeterred as it is by general industry apprehension over slowdown in the wake of economic uncertainties.
Excerpts:
MOTORINDIA: As the world’s 4th largest truck manufacturer and the 3rd largest bus manufacturer, what is the next goal set by your company?
Ravi Pisharody: Tata Motors has already become the second largest bus manufacturer in the world and is aiming to be among the top three players in the truck segment. The company has a brighter chance to improve its leadership position in view of the weakening European economy.
MI: How do you view India’s CV market vis-a-vis other emerging economies?
RP: In the last two years, the CV segment in India has been growing steadily with 25 per cent CAGR even though there is a decline in the European market. The market in other BRIC nations, i.e., Brazil, Russia and China, is also growing steadily as in India. The market is expected to grow around 15-17 per cent in the next five years.
MI: As a pioneer in the field of commercial vehicles, could you please mention some major milestones achieved by the company since inception?
RP: Being India’s largest commercial vehicle manufacturer, Tata Motors has several milestones to its credit. For example, the most successful and indigenised Tata 407 LCV launched in 1986 has a whopping market share of 70 per cent. Incidentally, this is the Silver Jubilee Year for the 407 brand. The runaway success of the mini truck Tata Ace launched in 2005 is a classic example of how the company strategy works. Similarly, Winger, the only real van in India launched in 2008, followed by the introduction of the Prima range of world-class truck platforms in 2009. Last year, the company came out with the first hybrid bus. Besides, it is a pioneer in introducing radial tyres for commercial vehicles.
MI: As the fleet and bus operators in the country are heavily burdened with different levies, do you have any plan of bringing out low-cost trucks and buses with higher fuel efficiency?
RP: No doubt, customer satisfaction is always the top priority for Tata Motors. Keeping this in mind, the company offered several benefits to truck and bus operators by introducing advanced technology. For instance, while upgrading the platform from BS II to BS III, the vehicle ensured minimum five per cent better fuel economy with vast improvement in quality as well as with the fitment of power train. The goal is to offer minimum five per cent extra fuel economy whenever the company comes out with new products. Even the Prima truck operators are able to achieve substantial savings and benefits because the vehicle runs 20 hours a day smoothly.
MI: What is the company strategy to tackle the growing competition in the commercial vehicle segment?
RP: Predicting the growing competition arising out of the entry of more players, including multinational companies, Tata Motors is well geared to meet the onslaught. Today, both the Prima trucks and Marcopolo buses come with several unique features that ensure global standard.
MI: As part of CSR activity, have you taken any new initiative in the areas of driver training, safety, fuel saving, etc.?
RP: The company always believes that driver training is very important, and it plans to set up five more institutes before March 2012.
MI: Could you cite a few leading loyal company customers with vast vehicle fleet and with decades of relationship?
RP: Since the company maintains strong and cordial relationship with vehicle owners, it indeed has a unique generation-wise customers. Tata buses and trucks have also become a most preferred choice not only in the private segment but also among STUs. The company has huge fleet owners of MHCV trucks all over India.
MI: Many passengers seem to prefer to travel by buses from competitors that offer better riding comfort and amenities. When can we expect technology upgradation from Tata vehicles to offer improved travelling facilities for passengers?
RP: In order to increase its market share in the luxury bus segment, the company has already had its major focus on the fully-built vehicle delivery rather than supplying only chassis. This has helped the company a lot in getting a major share of city bus operations.
MI: What is your current market share in buses and trucks?
RP: No doubt we are the undisputed market leader in trucks with around 68 per cent market share and the single largest bus manufacturer with 47 per cent share.
MI: Any plan of launching new bus or truck models this year?
RP: Of course, introducing new products is always a high priority for the company. For this, Tata Motors has been introducing several new products with advanced technology, and the recently launched Xenon CNG pick-up in New Delhi is one of the finest examples of the company’s successful approach. The company is planning to launch more variants in the Prima range – tippers and tractor trailers apart from bringing out BS 4 variants in 16 ton and 25 ton trucks. It also proposes to showcase its innovative technology products at the forthcoming Auto Expo in New Delhi.
Mr. Ravi Pisharody, with his rich experience and expertise in the automobile industry, has been the driving force behind Tata Motors’ growth and continues steering the company to achieve greater heights.
