Tata Motors Ltd. is betting on a new ‘Ultra’ range of trucks to increase market share in the commercial vehicles segment.
As part of its five-year strategy, the automaker is looking to expand its portfolio in the intermediate and light commercial vehicles as well the medium commercial vehicles segments, Girish Wagh, president of the commercial vehicles business at Tata Motors told BloombergQuint. The launch of the Ultra range of trucks, ranging from 7-16 tonne capacity, will help to strengthen its position in the ILCV segment, he added.
Tata Motors’ market share in the segment rose 2.7 percent to 44.2 percent for the year-ended March. For the commercial vehicles segment overall, its market share increased by 70 basis points to 44 percent as it undertook heavy discounting to increase volume growth.
Last August, while addressing shareholders, Tata Motors Chairman N Chandrasekaran expressed concern over the company's falling commercial vehicles market share from a high of nearly 60 percent five years ago and emphasised on the turnaround plan for its domestic business with a special focus on the ailing commercial vehicles business.
The company has been investing Rs 1,500 crore every year, Wagh said, adding that this investment is expected to grow marginally as they look to meet the Bharat Stage VI emission norms.
Tata Motors is eyeing demand from the e-commerce logistics segment and smart cities even as it contends with higher commodity prices. “We are seeing some of the headwind in steel and tyres, we have been able to pass on some of these to the customers. But in competitive environment, we have to absorb some of the costs, said Wagh.
Higher fuel prices is also a red flag for the CV maker. “Of late, we have seen customers talk about rising diesel prices, these could have some impact,” Wagh added.
Tata Motors chief Guenter Butschek is confident the company will outpace industry growth in the financial year 2018-19 but did not set a target.
Watch the full interview with Girish Wagh of Tata Motors here.