Fresh in the driver’s seat at Tata Motors, Mayank Pareek admits the carmaker has a tough task at hand, though he is equally bullish on a comeback. In an interaction with journalists on Monday, Pareek talked about making use of his Maruti Suzuki experience to spruce up Tata Motors’ rural penetration, where it has a lot of respect but little presence.
On the passenger vehicle industry
The auto industry has seen marginal growth in the last couple of months. That, too, was led by new model launches, with existing models hardly growing. Because of continuous resistance, the inflow of first-time buyers is restricted. One of the early signs of a revival is when first-time buyers come in large numbers. However, in the last few months, there has been a slight improvement in this area, and that gives us confidence that the market will start looking up. In the first six months of the fiscal, the industry grew only 2%. For the full fiscal, it should grow by 5% .
On Tata Motors’ domestic revival
Tata Motors has a challenge and we need to do much more than what we have been doing so far. We are rightly poised. We are bullish on making a comeback with sustained improvement in customer service and new product launches. We need to do a lot on the distribution front. The dealer network should be deeply penetrated and widely spread, and it should be able to provide quality services. There were gaps — that’s why we have been putting systemsin place to help customers get seamless service wherever they go.
On the rural market
It is huge — most carmakers are only touching the tip of the iceberg. Today, Tata Motors has a mere 16% penetration in the rural market and the scope for expansion is immense. Tata Motors as a brand is widely acknowledged and respected, whether in rural or emerging markets. Of 3,800 tehsils, Tata Motors is present only in about 200. We need to expand into this large ocean.
Timeline for revival
The last two years have not been good for Tata Motors, yet dealers have remained aligned. Bot suppliers and dealers have been affected, yet they feel it is possible to make a comeback. Further, people we are working with want Tata Motors to succeed, a great feeling to work with. One great success for a product changes everything.
Tata Motors has that inherent strength and it is the one threshold we are looking to cross.
On work culture at Tata Motors and Maruti Suzuki
Both companies acknowledge excellence and excel at what they do. Both acknowledge the challenges and the opportunities they offer. As for culture, it is too early for me to comment now. I am focusing more on the medium to long term. Unless we lay a strong foundation, we cannot move forward.
