It?s been a long drive from being a truck-maker to building Manzas and Nanos, but for India?s largest automaker, there?s still miles to go. In an attempt to draw up a strategy to become a leading global car company, Tata Motors is holding a day-long brainstorming session in mid-December, which will be attended by the company?s senior-most executives.
Tata Motors vice-chairman Ravi Kant, group CEO Carl-Peter Forster, managing director (India operations) PM Telang and head of the premium car division (Jaguar-Land Rover) Rohit Suri will meet with other senior executives at the session, and the strategy evolving from the meeting would help the company kick off its second globalisation journey.
Sources said that though Tata Motors entered the car business over a decade back, it is still known better as a commercial vehicles maker, despite its success in the car market. With the acquisition and turnaround of Jaguar-Land Rover, devising a cutting-edge strategy to spruce up the car segment could not have been better timed, they added.
After Forster ? a veteran with BMW and General Motors ? joined Tata Motors in April, the company has talked about an ambitious plan to penetrate various segments of the car market. On his joining, Forster had sought 100 days to unveil a larger strategy.
The day-long session would review issues like quality standards and supply chain management. Recent incidents of the Tata Nano catching fire have put the company in a poor light.
?The workshop will focus on giving a comprehensive overview of various business verticals. The purpose is not only to increase the sync between different departments but also to assess key challenges ahead for the group,? a person close to the development told FE. He said the company has lined up aggressive plans across verticals which would require a new strategy to fight competition.
?Over the last three years, the group has adopted a far more focused approach than in the past. Competition levels are also increasing across its key domain areas. A coordinated approach is the need of the hour,? the source said.
Tata Motors created an ultra-low cost niche with the Nano, but competition was quick to take note. Sensing the large market, Bajaj Auto and Renault-Nissan started developing an ultra-low cost car which would hit the roads in 2012. Piaggio of Italy too is planning a car which would be cheaper than the Nano. However, when contacted, a company spokesperson denied any plans for a session. He said: ?It is not required ? this is because the company has well-institutionalised periodic interaction processes across the Tata Motors Group, and therefore does not require extraordinary one-off meetings.?
In an earlier interview with FE, Ravi Kant had said that the company was embarking on its second globalisation journey to enter newer markets like Latin America, Vietnam, Middle East, Poland, Russia and Myanmar. He had said: ?We are looking at a fairly good presence internationally. By international, I don?t mean to say that we will be present across all geographies, but we will be present in chosen geographies and be recognised as a respectable brand in them.?Angel Broking’s auto analyst Vaishali Jajoo said the company was focusing on reducing costs across segments by streamlining production which could be an important point in the discussions.