Tata Motors has set its sights on the third position in commercial vehicles sales globally by 2019 claim industry sources. They draw attention to a recent statement by the company’s managing director and CEO, Guenter Butschek, that the company’s vision is to be among the top three automakers in the respective markets (CVs and passenger vehicles) by 2019. The company, as part of its customer-centric approach, held a three day service camp recently. With Butscheck known to describe the company to be undergoing transformation, industry sources claim that the products that are introduced by the company in the next two years will include commercial vehicles that bank on innovation and new technologies. More stress will be laid on the development of alternate fuel technologies, they add. The CV strategy, sources claim, hinges on the plans to set up local manufacturing units in Thailand, Vietnam, Bangladesh, and other markets in Africa and West Asia. Butscheck is known to have said that they hope to double commercial vehicles sales in international markets in two years.
Tata Motors and PT Pindad of Indonesia have signed a Memorandum of Understanding (MoU) to explore the market potential of Tata Armoured Vehicles in Indonesia and other ‘agreed’ ASEAN regions. The two will also explore the possibility of locally assembling Tata armoured vehicles at PT Pindad’s facility in Bandung, West Java province of Indonesia. An Indonesian state-owned enterprise, PT Pindad provides the main weapon systems required to support independence in defence and security of the Republic of Indonesia. PT Pindad (Persero) produces several industrial products for other aspects such as transportation and commercial explosives. Tata Motors’ armoured vehicle portfolio includes 12×12, 8×8 and 6×6 vehicles among others.
Tata Motors has entered the Bolivian commercial vehicle market through a distribution agreement with a local partner, Bolivian Auto Motors (BAM). BAM, according to Rudrarup Maitra, Head (International Business), Commercial Vehicles, Tata Motors, is engaged in the distribution of motor vehicles in Bolivia, and are a customer centric organisation. Through BAM, Tata Motors, in Bolivia, has introduced the Tata SuperAce (Petrol) LCV, Tata Xenon (4×2) pick-up truck (Petrol) and the Tata LPT 613 truck. The vehicles are available at Santa Cruz currently. They will be soon available at La Paz and Cochabamba.
Tata Motors has delivered 10 new fully integrated air-conditioned midi buses to Bilaspur under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme. Private operators registered under Bilaspur Urban Public Transport Society (BUPTS) will regulate the daily functioning of these air-conditioned midi buses, which will ply in the city of Bilaspur. Measuring nine-metre in length, the buses have a 900 mm floor height. Expected to facilitate swifter movement of the bus through congested routes, the BS III emission compliant buses have been built by Tata Marcopolo, Dharwad. They are equipped with an Intelligent Transport System (ITS) with an inbuilt On Board Intelligent Transport System (OBITS) framework in accordance with the UBS II norms. Additional features include fire detection and fire suppression system, passenger information system, an automatic vehicle location system, a security camera network system, on board vehicle health monitoring and diagnostics, and a single control unit in a bid to provide for commuter safety, passenger comfort and connectivity.
Tata Motors is applying CV export thrust to compensate for its declining domestic market share, claim industry sources. In the year ended March 2016, the company exported 50,000 CVs, they add. Looking to double exports in the next two years, Tata Motors, will employ a two-pronged strategy of consolidating presence in markets like Vietnam, which it entered three years ago, and will at the same time focus on newer markets like Tunisia in North Africa. In FY2015-16, Tata Motors exported 54,029 units of commercial vehicles, including light commercial vehicles, as against the export of 46,413 units in FY2014-15. The target is to export 65,000 units this year, and 100,000 units over the next two years.
Tata Motors has adopted a new, flat organisational structure, claim industry sources. They add that the new Managing Director, Guenter Butscheck, has initiated this change to foster faster and effective decision-making, and to have a prime customer focus. If sources are to be believed, the structural change, announced in an internal circular to the employees, emphasises upon eliminating layers of middle management so that the business units are empowered and have clear accountability. Said to define key principles of end-to-end accountability as far as the passenger vehicle and commercial vehicle business is concerned, the new, flat organisational structure is claimed to direct sales and marketing functions to report to their respective business heads who in turn will report to the MD. All product groups have been dissected into segments and platforms, and will now have to show accountability on parameters ranging from profit and loss, lifecycle management and business case including strategy. The new structure is scheduled to come into play from January 01, 2017.
Tata Motors has bagged orders of over 5,000 buses from 25 State Transport Undertakings (STUs) across the country. Known to be worth Rs.900 Crore, according to Ravi Pisharody, Executive Director, Commercial Vehicles Business Unit of Tata Motors, the company will execute all orders in year 2016-17. “The orders will enable us to further strengthen our leadership position in the CV passenger space,” averred Pisharody. According to sources at Tata Motors, of the total order, some require a fully IT-enabled bus to ensure trackability and traceability. The features required on the bus include public information systems, electronic destination boards, CCTV cameras, smart multi-mode ticketing, gps-enabled on-board intelligent transport system, wifi and diagnostics systems. Over 1,500 of the ordered buses will be fully built and integrated with these features, and manufactured at Tata Motors JV manufacturing facility, at Tata Marcopolo (Dharwad and Lucknow) and ACGL Goa. According to the sources, the orders represent a 80 per cent growth compared to last year for Tata Motors. The surge in buying from STUs is being witnessed after a gap of nearly four years as per company officials. It indicates a renewed focus on public transport according to them.