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'We Need Many More Years Of Good Growth'
Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, spoke to Arshad Khan of BW Businessworld on the company's recent launches, the future course of action and how the company is ready to deal with any sudden challenges
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Home-grown auto major Tata Motors witnessed a series of successful launches in the last one year. The launch of the Hexa, Tiago AMT and Tigor have set new benchmarks in their respective segments. Taking the momentum forward, the Mumbai-based automaker recently launched compact segment Tigor in the market at an inductor price of Rs 4.70 lakh to take on established players like Maruti Suzuki Dzire and Hyundai Xcent.
Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, spoke to Arshad Khan of BW Businessworld on the company's recent car launches, the future course of action and how the company is ready to deal with any sudden challenges. Excerpts
On new cars launches
Compact sedan was created in 2007 and till 2015 it was growing. In 2016, it, however, started to decline. When we did research and got into the psyche of the consumer, one important thing came out. Compact-sedan buyers are originally hatchback owners who wanted to upgrade as there was no option in the hatchback category. Other sedans were big and they couldn't buy SUVs. So they were going for a compact sedan and in a way they had to compromise as all these cars are basically hatchbacks attached to a box to make it stylish.
There was clear gap. So, in the last 2-3 years these customer stopped buying compact sedan and they started buying things like hot hatches, bigger hatches or compact SUVs. We launched Tiago for customers who wanted to buy a hatchback and we are launching Tigor for customers who wants feeling of a true sedan in every sense.
On Tigor long-term plan
More than numbers, what is important is our dream and vision. Our vision is that if anyone is thinking of buying a car between Rs 1.50 to 7.50 lakh, should have a look at this car. We are super confident that the look and the feel Tigor gives, one will end up buying this car.
On expectations from the upcoming fiscal year
Last year, the industry grew by around 9 per cent and we managed to achieve 18 per cent growth. We need many more years of good growth. We need to build on the success continuously and this will happen on multiple activities from our side like launching new products, engaging more with the customer. Going forward, I think the industry will grow at 9-10 per cent and we are going to do better than that.
On if demonetisation comes hits again
After demonetisation we have done better than the industry. I have been in the market for 25 year. There is no year when something special hasn't happened. Every year something comes up. It is very easy to raise your hand and throw towels and say we can't do anything. Smart thing is to find that there is always a solution. My view is always that these things are there in the market, you will have to fight.
On immediate and long-term market-share goals
I have no market share plan. My goal is that every customer who buys a car consider 2.6 cars, our aim is that out of the 2.6 cars, Tata should be one car. Our new portfolio which started with the impact design in 2016, we are confident that once you see, drive and feel our car, you will buy it. That will give you market share.
On price hike for Tata Motor four-wheelers anytime soon
Yes, very shortly, we will announce it. Input price and everything is going up, what to do. We have to find solution and make money.
In future will we see Tata entering new segments, say like compact SUVs and hot hatches?
There are many segments where we don't have presence and we would like to increase our presence. At present, e-cover only 59 per cent of the market and in the next 3-4 years, we want cover 91 per cent of the market.