Riding on the success of vehicles such as Nexon and Tiago, Tata Motors has lined up plans to increase its total addressable market to 90% by 2020, as part of its efforts to further expand network and grab more market share from close competitors. Total addressable market (TAM) is the overall revenue opportunity available for a specific product or service, taking into account the expansion scenarios. The company, which currently has a TAM of around 70%, is betting on its two new platforms — Alfarc and Omegarc — which will deliver 7-8 products/variants ensuring greater coverage and sizeable economies of scale.
“We will continue to strive towards driving volumes and increase our market share as part of our ongoing turnaround journey,” said Mayank Pareek, president for Passenger Vehicles, Tata Motors. Addressing more markets comes with a plan of increasing number of dealerships at untouched locations. It has currently activated 27 dealerships in its top 20 serviceable markets with another 17 more under activation. Seven new dealerships were added each in Kerala and Maharashtra along with six new ones in Rajasthan in a day. These additions have helped the firm to expand to an additional 90 cities this year.
Of any competition until 2015, Tata Motors considers 2018 as a turning point in the history of its passenger vehicle business with consecutive growth for 35 months and clocking the highest sales figures in 63 months in January 2018.
Revitalised with the success of Tiago, Tigor and Nexon primarily, Pareek says remarkable improvement in brand perception in 2018, owing to forward-looking market strategy left the close competition significantly behind, in an apparent hint to Maruti Suzuki Vitara Brezza.
Not only the products, the aggressive marketing strategy reaped benefits for the company, be it strategic digital campaigns or signing up Hrithik Roshan as the brand ambassador for Tigor. The firm is banking on sales enhancement, cost reduction and operational efficiencies to capture a larger pie of the domestic market next year.