Setting its sights on the global markets to drive future growth, Tata Motors is preparing a blueprint for the export market which would become a major contributor to its overall volumes and provide cushioning against probable upset in domestic demand.
Tata Motors’ commercial and passenger vehicle divisions are in the process of selecting countries where they want to be present in, including developed markets of the West which are best suited for introducing the next generation electric cars of the company. Last year, Tata Motors appointed Anurag Mehrotra, former MD of Ford India as vice president, international business and strategy.
Talking to FE, two senior executives of Tata Motors said that like the domestic market, growth aspirations are high for the international market too that are similar to India as well as in developed markets.
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Shailesh Chandra, MD, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said, “We have to go international. Two years back our share was not even 5% in India. How can you go international with that kind of share in the domestic market? The first thing someone will ask, ‘is this brand doing well in its own country’?”
Tata Motors has not only regained the third position in the passenger vehicle space through rapid acquisition of market share but held on to it despite competition. Tata Motors had spoken about regaining lost ground in the PV space as part of its Turnaround 2.0 plan.
From under 5% a few years ago, Tata Motors’ market share closed at little over 11% as per FADA numbers by the end of October and at 14% as per SIAM numbers by the end of September. The company exported just 989 units or less than 1% of its total sales during April-October. In comparison Maruti Suzuki and Hyundai sold nearly 14% and 20%, respectively, of its cars outside of India.
“We were two (emission) stages behind the developed markets like the US and Europe. Now with our electric vehicles, that handicap is gone; safety norms are getting harmonized with the international standards. The gap has reduced for you to go international now. Having gained some traction and status in the domestic market, in 2-3 years we will start thinking reasonably high international share also. We are now selecting the countries to enter,” Chandra added.
Tata Motors is planning multiple EV launches in the next 2-4 years, including ‘born electric’ vehicles which are essentially built as an EV from the beginning.
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Tata Motors is the biggest commercial vehicle brand in India but its exports are marginal compared to domestic sales. During October, the company exported just 5% of its total sales, which was down from 7% last October.
Girish Wagh, Executive Director, Tata Motors said, “We should not see the international business as a percentage of the domestic business. For us the international business has its own aspirations for growth and we are embarking on our strategy. We will grow in select markets. We are looking at international business as a separate vertical.”
