Tata Motors is looking towards continuing its growth story as far as the passenger vehicle segment is concerned. The company sees enough opportunities to be probed to deliver good double-digit growth in the current financial year of 2018-19. The automaker places its bet on increasing demand, especially from younger generation customers. The company is looking at its new models and network expansion to achieve its stated objectives in the upcoming period. The stock ended on a positive note on both the BSE and the NSE.
Tata Motors VP for sales, marketing and customer support in respect of passenger vehicles business, S.N. Barman said that the past two fiscal years were good for the automaker. The company has outperformed the industry as a whole, the Hindu reported. For instance, he pointed out that the firm could achieve a growth of 22 percent in passenger vehicles in 2017. This was termed as much more than the 9.5 percent growth seen in the industry as a whole. The VP expressed his confidence that it could repeat the growth story in the current year too with nearly 23 percent uptick in 2018 compared to the estimated 8 percent growth that the industry would have seen.
However, he has refrained from providing any expected numbers for the current financial year that will end in March 2019. None-the-less Barman indicated his confidence level to deliver a growth that would be much similar to that of last fiscal year. The company started off the first quarter’s first month on a strong footing delivering 86 percent jump in sales number. In fact, the company gained the most in April.
Barman believes that one of the main reasons that it could gain was the changing profile of the customer. He pointed out that the customer profile is changing very quickly for the automaker. Currently, 65 percent of its customers’ age is below 35 years. That meant younger generation liked its products. Incidentally, it is the key component for any company, irrespective of industry and sectors, as they are believed to spend more.
Therefore, Barman placed his bet that the company could be well ahead of the industry in the current fiscal year too. This apart, Tata Motors has done extremely well to boost its market share in the passenger vehicle division from 4.6 percent to 5.8 percent in the latest period. That is also a clear indication as to how the company is able to meet the customers’ response.
The VP disclosed that he would focus on increasing the number of its dealership network by a minimum of 100 this year. That should allow them to deliver ‘high double-digit growth.’ Currently, the company has about 746 dealerships in the country. He indicated that his firm is engaged in revamping, as well as, upgrading its products on a constant basis. Barman expressed the confidence that along with marketing, it would be able to achieve the targeted growth levels.
The VP said, “We now have one product doing well in each segment. Tiago is now among the top 10 models in the hatchback segment and Tigor in the sedan segment. Nexon is number 2 in SUVs.”