Ratan Tata praises rival Mahindra, rues Tata Motors' sales

[DukeNukem]

Ratan Tata is set to retire as the chairman of the Tata Group in December this year. After he addressed the company’s shareholders at the annual general meeting yesterday, it was clear that there would be no better send-off for him than Tata Motors cementing their position above close rival Mahindra & Mahindra in the domestic auto market.

Mr. Tata stated “(I have) great respect for what Mahindra & Mahindra has been able to do. I have certain degree of sadness and shame that we have let that happen. I think we have a great deal of introspection to do as to why, Mahindra should be ahead of us, than us catching up.”

The rivals have been neck to neck in the recent past. The difference in their passenger car sales figures in the first quarter of the current fiscal was negligible; Tata Motors shipped 60,405 units against M&M’s 59,902. For the month of June, M&M took third position outselling Tata Motors by more than 2,000 units.

The reason for M&M’s recent success over Tata Motors can be attributed to Mahindra's dominance in the UV segment with the Bolero, Scorpio and XUV500. Tata’s ageing Safari and Sumo have been no match for them. In addition, Tata’s sedans and hatchbacks have performed below par in several months, clearly feeling the heat from newer competition. Much was expected from the Nano, but it's volumes have been disappointing.

In his address, Ratan Tata has also recognised the need to focus on achieving volumes across all vehicle segments. He added that his dream project Nano wouldn’t succeed unless the right volumes are delivered. Referring to Tata subsidiary Jaguar Land Rover (JLR) who has been contributing healthily to Tata Motors, he said that JLR would be competing more fiercely with the trio of German carmakers in India’s fast-growing luxury car segment, by introducing compact cars.

[chennai-indian]

Ratan Tata is a true gentleman. Anand Mahindra acknowledged his praise by tweeting that he takes this as a pat from the big brother and will strive harder!!

[CrAzY dRiVeR]

Originally Posted by DukeNukem

The reason for M&M’s recent success over Tata Motors can be attributed to Mahindra's dominance in the UV segment with the Bolero, Scorpio and XUV500. Tata’s ageing Safari and Sumo have been no match for them.

And I don't see the situation changing all too soon either. Mahindra has few smashing products in the pipeline - Mini-Xylo and even a new Scorpio is rumoured to be under development. Morever - new entrants like Renault Duster and Ford Ecosport will soon change the game in the entry level SUV segment.

TATA has the new Safari Storme, which already feels weak and tired against the competition IMO.

[apachelongbow]

A big lesson in business management. You may have good products, value for money goods, better looking than the competition however if you totally lack in quality control and more importantly in after sales service you will not sell. Even if you improve your quality control and after sales, the perception of your brand as low quality will take sometime to change.

[mac187]

Originally Posted by apachelongbow

the perception of your brand as low quality will take sometime to change.

There is a lesson to be learnt from the Koreans here. Hyundai has done exceeding well in establishing itself in India. Tata's needs to take a que from them on how to change perception of a brand. Whatever they do, they need to do it fast.

[apachelongbow]

Originally Posted by CrAzY dRiVeR

TATA has the new Safari Storme, which already feels weak and tired against the competition IMO.

Already the recovery seems to have started. Current sales report (July) Tata motors in No2. If you see the current lot of Tata cars, you may notice a drastic improvement in refinement, fit and finish and quality. Niggles have dropped to virtually non existant.
I am getting good after sales support (not that I need any now). Tata motors have now started monitoring quality of dealerships (pre sales, sales, after sales support etc) and feedbacks are taken religiously.

I have seen new batches of trainees (sales and support), who are MBA's from good institutes, who are very keen and motivated. So in all a good progressive step forward from Tata Motors.

Regarding the Safari, it is like a bullet. You buy a Safari because it is a Safari. The awesome feeling of calm and power at 2000rpm is to be experienced.

The new Storme, from what I have seen is a drastically improved car. I am waiting and watching. Lets see.

[KL01BE]

It requires a big heart to praise the competition and an even bigger one to admit your follies. Mahindras always had the strategy of tying up with foreign brands and importing technology. Be it engines or plant machinery. Renault Logan and mHawk engines, I believe are the more known ones.

Where in Tatas have concentrated thus far in developing own engines. This has resulted in a sizable difference in the quality of the products.

The recent acquisitions of foreign brands will hopefully add to the quality of products offered from Tata.

[CrAzY dRiVeR]

Originally Posted by apachelongbow

Already the recovery seems to have started. Current sales report (July) Tata motors in No2.

From a range of products - starting from the humble Nano to the expensive Aria. Mahindra has very less products in their stable- yet all contributing decent numbers.

A mini - Xylo and a Verito CS can change the numbers game significantly, can't it? My only point being - TATA's future product line up (atleast till 2013 end) looks weak to give a heavy improvement.

[ghodlur]

It takes great guts to admit one's mistake and praise the competitor and Ratan tata just proved he has lots of them.

Tata was banking solely on the Nano for its revival without any new offering in the stable apart from the down beaten, facelifted cars and some over priced ones. Add to that their QC took a beating with many Nano fire incidents. With no new and fresh offerings seen in the near future I dont see TaMo's sales figures moving northwards very soon unless they come up with a fantastic strategy of responsive dealers and after sales. If it has to retain the No 2 spot it has to have a car in every segment IMO coupled with some sensible pricing.

[apachelongbow]

Originally Posted by CrAzY dRiVeR

From a range of products - starting from the humble Nano to the expensive Aria. Mahindra has very less products in their stable- yet all contributing decent numbers.

A mini - Xylo and a Verito CS can change the numbers game significantly, can't it? My only point being - TATA's future product line up (atleast till 2013 end) looks weak to give a heavy improvement.

My point was not about Tata vs Mahindra. I wanted to show how improving quality is bringing back sales numbers. I believe Tata motors has a freeze on new models until next year to concentrate on quality improvements. That is a progressive idea.

[phamilyman]

Originally Posted by apachelongbow

If you see the current lot of Tata cars, you may notice a drastic improvement in refinement, fit and finish and quality. Niggles have dropped to virtually non existant.

I see your ironical comments, have a hearty laugh and I raise you this:
http://www.team-bhp.com/forum/long-t...pdate-120.html

I am not even going to start on my brother's travails with the 06 indica Xeta or my BIL's endless niggles with the 11 Manza (but the car otherwise runs like a dream).

Enough speeches from Mr Tata - the rubber has to hit the road and the quality has to go up further. They should thank their lucky stars for Fiat to have dug itself into the hole it did - else they wouldn't have gotten the Fiat engines/gearboxes that help the Manza/Vista sell today!!

[raj_5004]

Really commendable on Ratan TATA's part to accept his firm's cons in front of the media.

Originally Posted by KL01BE

It requires a big heart to praise the competition and an even bigger one to admit your follies. Mahindras always had the strategy of tying up with foreign brands and importing technology. Be it engines or plant machinery. Renault Logan and mHawk engines, I believe are the more known ones.

As far as I know, M&M designs everything in house. Even the mHawk was designed in house with just some common rail components being outsourced to Bosch, just like TATA outsourced to Delphi for it's DICOR engine.

All their product's R&D has been done in house itself.

[rajeev k]

There was a similarity between the teams that developed the Indica and the Scorpio before the concept to launch of the Nano by Tata which the whole world looked on in admiration.
Rather than airing accusations against one another the move by MR Ratan Tata and Mr Anand Mahindra, the outgoing chairman of tata and the new Chairman of Mahindra is worth a million praises.

[4x4addict]

Good to hear it from the horses mouth that Tata needs to really pull up it's socks and get it's act together.

Tata fans come up with all kinds of silly/sad excuses as to why Safari/Aria doesn't sell, but fact of matter is Tata is struggling to make numbers in anything except models that come with a yellow board.

The fact that Rata Tata has acknowledged this problem is in itself a good thing as most of the Senior Tata management is suffering from ostrich syndrome.

@raj:

mhawk was developed for Mahindra by AVL of austria it is not an in house engine.

[smartcat]

I finally managed to get my hands (and legs) on a XUV500, and it is shockingly good to drive. The overall driving experience was equivalent to that of any car in the Rs. 15 Lacs segment.

Mr. Ratan Tata, I concur!