Tata Motors to fuel biz with ~4,000-crore investment
Saddled with losses in its domestic commercial and passenger vehicle business, home-grown auto major Tata Motors on Monday reiterated its turnaround plan focused on cost reduction, new products, and bringing in efficiencies in the supply chain.
The company said it would invest ~4,000crore this year. Of that ~2,500crore will go to the passenger vehicle business.
Calling the commercial vehicle (CV) its‘ back bone’, the company said it would invest ~1,500 cr ore in the business over the next few years.
Guenter Butschek, managing director, said the company had been“far too complacent” and this allowed competitors to grow their market share. Over the past two-three years, Tata Motors, while remaining the biggest commercial vehicle maker, has lost its market share in certain segments to rivals. The company is targeting a 5 per cent gain in market share in the CV business through a host of launches and improvement in retail, especially in microcities.
The company has a 47.5 percent share in the medium and heavy commercial vehicle segment while its share in light commercial vehicle segment is 38 per cent. Tat a Motors Chief Financial Officer (CFO) CR Rama krishn an said the company was targeting an improvement of more than ~1,500 cr ore in the bottom line at a standalone level. However, he refrained from specifying anytime line.
Talking to the media a day before the company’ s 72 nd annual general meeting, Butschek hoped the company would soon see a turn around. His optimism hinged on the stand alone business, excluding the company’ s profitable luxury car business, JLR. The stand alone business incurred a loss of ~2,480 cr ore in FY 17 and losses continued
COMPANIES Most carmakers lose share in a growing market
in Q1 this year.
The company’ s stock has been battered in the recent weeks and it hit a 52- week low of ~358 on August 11. It closed at ~374.55 on Monday, down 1.62 percent over the previous close.
Tat a Motors said it would review its manufacturing foot print both for commercial and passenger vehicles to look at developing greater synergies
Private producer Tat a Power has installed its first electric vehicle charging station in Mumbai, as part of a sustainable business initiative. The company plans to setup charging station sat various locations in Mumbai and is already in talks with various stakeholders.