Tata Motors cuts down production as sales plummet

Posted on: Mar 8, 2013 - 12:53pm IST

Tata logo on the Vista D90Tata Motors is definitely in difficult times as the automaker witnessed a depressing 70% drop in sales this February, compared to the same period last year.

The sales across the portfolio has witnessed a steep decline. The cars in the UV segment such as Sumo, Safari and Aria also posted a drop in sales even though the segment grew by 57% in the first 10 months of this financial year.

The Tata Nano still continues to be an unpredictable problem child for the company. The little hatchback was the only petrol model in 2012’s top 10 cars to post a positive sales growth, but the sales have come down to a meager 1,504 units in January.

Financial Express reports that Tata Motors’ Sanand factory has cut down the production of Nano by about 80% due to lack of demand and building inventory. It is reported that around 14,000 units of unsold Nanos are in stock in the factory and dealer yards. The total number of inventories of Tata’s various passenger cars are estimated to be around 45,000 units.

Tata Motors have recently started many marketing initiatives and heavy discount offers to push the inventories. The Nano can be purchased by swiping your credit cards now. Moreover the Manza sedan is offered with hefty price slash and a 60% buyback assurance offer.

It is imperative for Tata Motors to fast track their new product development to mitigate the adversity of the situation.

[Source: Financialexpress.com]

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6 thoughts on “Tata Motors cuts down production as sales plummet

  1. Nicky says:

    TATA Motor’s sales force is pathetic. I had visited my TATA dealer yesterday to renew insurance and stopped by the Manza desk to enquire about the 5.99lac offer. None of the sales people had heard about this offer. Enough said. Add lousy/ugly/dated product portfolio to this sorry state of affairs. And, i’m man enough to admit to the world that i became stupid and bought a Nano.That was a really dumb move on my part. My late father advised me to buy a used Alto from a True Value dealer and i didn’t listen to him and paid more for a Nano.His spirit muhopest be laughing at me as i type this. I hope to say TA-TA to TATA Motors soon. I hope this third rate desi company ceases to exist.

  2. Ar.nikhil aware says:

    Yes I agree with as santosh tata should concentrate on there current models .indica should totally refresh externally..internally now it is good compare to early models.externally same as early models. Tata is not serious with indica which is actual bread and butter.my first car was indica v2. In 2003 . I love indica ..they should change total front face with modern one as like Hyundai change ..time has not gone .today also i have two grande with modified with original tata aces series ..I live in nashik..when I travel all no one understand which SUV is this…every one has wow on there face..tata newly launch xenon pickup is very stylish from front than storme..I wonder why tata is not trying choping xenon pickup and convert it into compact SUV .i m sure that it will look better than duster..as mahindra done it with quonto..pls shoeb ( srk) help tata…I want to share my grande photos to all.pls help me..

  3. sridhar says:

    I think people have started to realize gradually that low cost doesn’t always mean a value for money car. Tata should have seriously looked in to their quality of the products and importantly improved on their After sales support, which is what builds up confidence about their cars in customer’s mindset. They did have a very good car in Aria but initial overpricing of that also added upto their problems.

  4. Nj says:

    Fundamentally, they have not-so-good product portfolio. Indica/indigo and straight safari storme and aria. Sumo does its duty on taxi segment. Hence if we ignore Sumo, the gap is too wide. Solution is to either bring new products to fill gap or reduce gap. New product will add more cost and shud be avoided. Take out safari and bring storme’s pricing on par with duster and spend on marketing storme against duster. Additionally, concentrate on enhancing customer support process. Both definitely will get some sales.

  5. royvayalil says:

    Tata motors should shed its parochialism and go ahead and bring in new products. Tieing up with Chery its collaborator with JLR in China would be a good step. Unlike its earlier tieup with Fiat,which hardly had any option for joint product development, the fruits of the JLR-Chery jv should form the basis of tata’s next gen car range.

  6. Santosh Kinagi says:

    Tata would have taken the corrective measures at least a two years back…The companies like VW, Skoda, Fiat,Renault, Nissan etc are becoming very agressive and have the good brand image and good products….
    As a short term plan Tata should concentrate on small car and an Mini SUV primarily for the short term (3months)instead of trying to refrsh entire range….


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About the Author
Nithyanandh K

As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!