TATA Motors in India has faced the worst period in February 2013 where it has witnessed the market share of its passenger car falling down to the lowest level of 4.9%. But market share of heavy truck was at 52.19% even with increasing competition and a slow growing economy which has destroyed its passenger car share.
TATA Motors is facing glooming stars since September 2012 as reported by SIAM. Personal vehicle space including utility vehicles, cars and venture vans have witnessed sprawl and a severe plunge from 9.46% in September 2012 to 4.68% in February 2013.
Having witnessed so many exhaust of hopelessness, the company now wishes to start the next fiscal year with weaken stocks, but targets not to merge fiscal losses with the coming financial year.
Karl Slym suggested on this issue that there is a requirement to equate production with demand so that dealers do not face problem with stock piling. The company desires to have the least number of stocks across all channels before the next financial year.
TATA Motors has the requirement of revitalizing its products in requisites of their designs as these have been outdated which was suggested by the MD of Frost & Sullivan, South Asia , Mr. VG Ramakrishnan.
“After shedding its market share to a great extent , the auto giant has been concentrating on liquidating its inventory and fabricating in proportion to demand. The company’s declining market share also matches up with meager sale facts registered by the business in a decade, when sale facts dropped 26 per cent to around 158,513 vehicle units in the month of February. However, what was glaring is the firm’s passenger vehicle sale facts also declined 70per cent to 10,636 vehicle units, in a market that saw a growth of 4 per cent during the last month (Feb 2013). The circumstances in the market place are very forceful. Nobody wishes to confront either of the two ends,” a person near to the situation stated this.