05
INDIAN AUTO INDUSTRY AND TATA MOTORS
India’s GDP growth continued to be below 5% and Industrial
growth remained in negative territory. Consequently, the Indian
auto industry witnessed a decline in both passenger vehicles and in
commercial vehicles segment by 4.7% and 22.4% respectively. For
most of last year, the economy was hamstrung by rising inflation
and high interest rates, leading to relatively low consumer interest
in buying new vehicles, and, in many cases, postponement of
purchase. In the later part of the year, reduction in excise duty and
partial lifting of mining bans did help in recovery of sentiment, but
only to a limited extent. High delinquencies in vehicle financing led
to tightening of lending norms by financiers, which badly impacted
the sales of small commercial vehicles and passenger cars.
Tata Motors domestic business, in this tough environment, lost
market share in both commercial vehicles and passenger vehicles
business. While the competition in both the segments remained
quite aggressive with almost all the players resorting to huge
discounting, Tata Motors’ approach was cautious and responsible.
As integral part of this approach, the Company focused on keeping
inventory levels low in order to reduce the burden on its channel
partners. On the product front, the company showcased several
impressive new products at the Auto Expo ’14, with a lineup that
included Tata Bolt and Tata Zest, due to be launched in the coming
months. Both the products have created high levels of excitement
among the potential customers. The new Prima LX and Ultra
range in commercial vehicles also showcased great promise to be
category leaders. They aptly demonstrate Tata Motors’ technological
capabilities and the company’s pursuit to offer world-class products
and experience to its customers.
To ensure long-term competitiveness of Tata Motors, the company
also took several steps under the Horizonext strategy- new
products, quality improvement and enhancement of the consumer
experience- that will help improve sustainable profitability of the
Corporate Information
Mission, Vision and Values
(04-07)
Chairman’s Message
To ensure long-term competitiveness
of Tata Motors, the company also took
several steps under the Horizonext
strategy- new products, quality
improvement and enhancement of the
consumer experience- that will
help improve sustainable profitability
of the business in long-term. The
company has steadily progressed in all
these areas and is inculcating a
culture which is intolerant to poor
quality and absolutely committed to
customer delight.
Board of Directors
