Tata Motors is currently experiencing a rapid decline in its sales in the Indian market due to intense competition from other car manufacturers. Tata Motors is losing its market share and the company is not in a strong position in the passenger car segment. Tata Motors needs to introduce new products in the booming segments in order to take on leading rivals. The automaker has reduced prices from Rs. 29,000/- to Rs. 50,000/- on passenger cars, excluding Tata Nano, in order to boost up sales.
Tata Motors has revised prices of the diesel Manza Club Class, with the range now starting from Rs. 5.99 lakhs for the base diesel. The LX, VX and EX variants of the Manza diesel are now priced at Rs. 6.55 lakhs, 7.19 lakhs and 8.14 lakhs respectively. Tata Motors has also announced Club Class Buyback Assurance, where the company will offer buyers 60% of the purchase cost after three years.
The 2013 Union Budget saw an increase in excise duty of utility vehicles. While the automaker is reducing passenger vehicle prices, the prices of utility vehicles has been increased by up to Rs. 50,000/-. According to the manufacturer, the price of Tata Safari will go up by around Rs. 35,000/- and price of Tata Sumo will go up by around Rs. 25,000/- as the Finance Minister announced a hike of 3% percent on excise duty. Tata Motors’ arch rival, Mahindra also announced a hike of their products by more than 2 percent, excluding Mahindra Quanto.
Tata Motors will be taking short, medium and long-term measures to address all the issues. The short term measures, in terms of months, will consist of mild changes which will include facelifts, addition of features on cars and so on. Medium term measures in terms of a year or more will consist of drastic changes including introduction of new models. While the long term measures are said to be a revision of Tata Motors’ entire product portfolio. The company has a long way to go to regain its lost number three position.