Tata Motors to review portfolio, to work out turnaround strategy

MUMBAI: Tata Motors' newly appointed MD & CEO Guenter Butschek has his task cut out. He has decided to review the company's current product portfolio (including Nano) and future launch plans to work out a turnaround strategy.

Butschek took charge at Tata Motors about seven weeks back after working at France's Airbus as COO for four years. Prior to this, he spent 25 years at German automotive giant Daimler. "We might not be on everybody's shopping list as a top priority, but we are working on it," Butschek told TOI. "We need to get back, and we can do it."

The homegrown auto major has been struggling to maintain its market share, which has fallen drastically over the past few years in the absence of new models and a poor response to Nano. The response has been far from satisfactory even for some of the recent models such as 'Bolt' mini and 'Zest' sedan, prompting the new MD to call for a review. Sales of Tata Motors fell from 3.52 lakh in 2010-11 to 1.61 lakh in 2014-15. The company has sold 1.38 lakh units in 11 months of 2015-16, and Butschek seems worried about the performance.

He said Tata Motors wants to develop and work on models that could be "game-changers" in the passenger vehicle market. "We are in the process to review our future technology to keep our pipeline filled with exciting products."

Speaking on Nano, which has been refreshed and spruced up recently to make it more appealing and in sync with the times, the new MD said, "Nano is going to play a role in the new product strategy. The only question is which role it's going to play."

Asked if the model will continue or not, he said, "I am not saying that it will not be continued. As the Nano plays an important role today, it is part of the strategic product portfolio."

The Nano had not lived up to its high expectations. Its sales fell to 16,901 units in 2014-15 compared to 74,527 units in 2011-12. Till February this fiscal, the company has sold 20,280 units of Nano.

Butschek said Tata Motors' performance has been impacted by frequent changes in leadership. He took charge nearly two years after the exit of Karl Slym, who had committed suicide. The company also had ex-GM Europe boss Carl-Peter Foster at the helm for some time, but he quit over personal reasons in September 2011.

Tata Motors