The company will need to address the marketplace more effectively

In the coming year, Tata Motors’ predominance in commercial vehicles (CV) will be challenged by the entry of international brands such as Mercedes-Benz, Volvo and Navistar which have all entered, or are in the process of entering India.

Addressing Tata Motors’ shareholders in a letter in the company’s 67 annual report 2011-12, Chairman Ratan Tata said, “A new line of very competitive, fuel-efficient vehicles is being developed by Tata Motors to meet the competition head-on.”

In 2011-12, Tata Motors had a market share of 58.5 per cent in the Indian CV segment.

In his statement, Mr. Tata, who steps down in favour of Cyrus Mistry at the end of this year, said that in passenger cars, the company would face even greater competition from the many automotive brands that were in the country. “The company will need to address the marketplace more effectively with its existing and future products in order to regain the level of market share that it earlier enjoyed.”

On Tata Nano, he said the fundamental economies of the Nano, “which was globally acclaimed when it was unveiled in 2008 and was plagued with start-up roadblocks in West Bengal, will continue to establish itself in the Indian market with a wider sales and service network. The potential market for such an affordable car is enormous throughout the developing world.”

He said Jaguar Land Rover has undertaken its most ambitious product development programme in its history, “and will be launching several new sports sedans and sports cars in the next two years to provide dealers with a more competitive and wider product range.”

The company will also be offering cars with new higher-powered, more fuel-efficient engines to meet customer preferences. Face-lifted and new models of the Range Rover as well as a competitively-priced new line of rugged, lifestyle vehicles under the Land Rover brand are also scheduled to be launched. “New manufacturing facilities are being considered in China to better meet market demand for Jaguar and Range Rover in the region,” Mr. Tata said.

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