Mumbai Capital

Tata Motors to undergo transformation exercise

Managing director and chief executive of Tata Motors, Guenter Butschek, addressing the gathering at a news conference in Mumbai, on Thursday.— Photo: Reuters  

Tata Motors’ newly appointed chief, Guenter Butschek, on Thursday said the company would undertake a transformation exercise, which would include a relook at brand positioning, revamping products and increasing its global footprint.

“Tata Motors will undergo a major transformation process in order to get future-ready. We would like to effectively review the entire setup of Tata Motors as far as structure is concerned, as far as the processes are concerned and when it comes to manufacturing, as far as the equipment and tools are concerned,” he told reporters during his first media interaction since hsi appointment.

Mr Butschek, the ex-chief operating officer of European aviation major Airbus, took over as the managing director and chief executive of Tata Motors last month.

Mr Butschek, hinted that transformation process would start with the re-launch of a refined brand positioning in a fortnight.

“Instead of having a scattered brand identity where people have different interpretations internally as well as in the market, we would like to have a very strong brand statement, which will not only serve as the backbone for internal transformation process, but also as a reference point for product launches and expanding the dealer network,” he said.

Mr Butschek added that there was room for improvement in the quality of manufacturing and the company was also looking at reducing the number of suppliers.

“We will certainly reduce the number of suppliers... I would rather focus on the development of my strategic supply partners instead of wasting an awful lot of effort on ones who would always remain substandard,” he said.

He said focussing on producing more models from a single platform and quicker turnarounds in launching new models to address the opportunities will also be a focus area.

On the products side, he said the company has the right mix, from the lowest end to the high-end on the commercial vehicles (CVs) front, which makes it possible for it to enter any market, but added that this requires investments on the distribution and sales front.

One of the markets which the company is planning to tap for CVs is Latin America, he said.

There will be more passenger car launches, starting with the hatchback Tiago soon, which will be followed up with the crossover Hexa showcased at the Auto Expo, he said, adding that there is at least one more car its engineers are working on at present.

“In the last couple of years, Tata Motors has taken a creative break in order to rethink its strategy in order to put the right product on the PV side in the pipeline and now, we will deliver on the expectations,” he said.

He called the launch of the Nano a “visionary decision”, which had created a unique market segment, but also conceded that the company had not achieved sales as per expectations.

Mr Butschek said the transport industry is at a crossroads at present, given the traffic problem in cities which warrants a rethink at the solutions.

Asked about the recent strike at its Gujarat plant, Mr Butschek said he would like to be more proactive when it comes to industrial relations rather than do some fire-fighting once a crisis erupts.


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Printable version | Apr 13, 2021 8:16:03 PM |

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