Product range is driving sales at Tata Motors CV division: Girish Wagh, Business head

MUMBAI: Tata Motors would invest Rs 1,500 crore across various segments of freight-haulers to cement its leadership credentials after the country’s biggest truck-maker harnessed a robust product portfolio to help regain some of the lost market-share in the past couple of months.

Contrary to what some would believe the figures are not a result of “GST discounts” but a “strong product portfolio,” supported by greater engagement with dealers and customers, Girish Wagh, the newly appointed head of the commercial vehicles (CV) division told ET in his first interview since taking up the job. “Customers do not buy on price alone, they also buy on comfort.”

Locally, July sales at 27,842 vehicles were up 15% on-year, while August sales in the country at 45,906 units were up 26% on-year. “Retail sales have been very good and has picked up in July and August,” Wagh said, referring to the turnaround.

Tata Motors’ market share dropped from a high of almost 60% in 2011-12 to 44% over a period of 5 years. In the June quarter of FY18, Tata Motors had suffered a decline of more than 17% in the CV business over the last year while rival Mahindra & Mahindra (M&M) reported a growth of 17%. “Retail sales have been very good and has picked up in July and August,” Wagh said, referring to the turnaround.

Recently, chairman N Chandrasekaran told shareholders in his annual letter that the lack of adequate responsiveness to the competitive environment and an unsustainable cost structure had contributed to the erosion in market share. Wagh said that the business is “not interested in buying market share” and the company has embarked on a “business turnaround plan” that is majorly aimed at achieving a strong bottom-line improvement.

The company has prepared a line-up of 4 launches on the medium and heavy commercial vehicles side (M&HCV), and 5 launches in the intermediate and light commercial vehicles (ILCV) segment for FY18. The company also wants to bring down costs by at least four figures, Wagh said.

With 25 hybrid buses ready to be deployed with the MMRDA in Mumbai and talks going on with the Indian Oil Corporation (IOC) and Petronet LNG for infrastructural support for LNG trucks, the company is also diversifying its portfolio and bringing in more vehicles that run on alternative fuels.

Tata Motors