Tata Motors upgrades existing cars as rivals launch new products
By Aradhana Aravindan
PUNE, India (Reuters) - India's Tata Motors (TAMO.NS: Quote) on Wednesday launched eight upgrades of existing models, including a CNG-fuelled version of its low-cost Nano, but said little about plans for completely new vehicles to help reverse sliding car sales in India.
In recent quarters, strong performance at its luxury Jaguar Land Rover unit has helped compensate for weak passenger car sales at home, where Tata is losing market share to rivals Hyundai Motor Co (005380.KS: Quote) and Maruti Suzuki (MRTI.NS: Quote), which last year launched its successful Ertiga multi-purpose vehicle.
"There have been new launches by Tata's competitors every year, but as far as the company is concerned, they have just been launching refreshed or slightly modified versions of their existing cars," said Yaresh Kothari, analyst at Mumbai-based Angel Broking.
Tata Motors' passenger vehicle sales fell 15 percent in the financial year that ended in March. It has also lost traction in the sport utility vehicle (SUV) segment, where it was once the market leader, to local rival Mahindra and Mahindra (MAHM.NS: Quote).
The Nano, launched to great fanfare in 2009 as the world's cheapest car, has been a disappointing seller, with sales down 27 percent in the last financial year to 53,848. The company has not launched an all-new Tata-branded passenger vehicle since its Aria crossover in 2010.
Karl Slym, who previously headed the India operations of General Motors (GM.N: Quote), became Tata Motors' managing director in October and has been tasked with reversing its market share fall at a time when high interest rates and rising ownership costs have forced many Indians to put off car purchases.
Annual car sales in India fell for the first time in a decade in the financial year that ended in March and are expected to rise just 3-5 percent in the current year.
"We are not going to come up with a brand new vehicle today, after that short period of time," Slym told reporters on Wednesday at the company's plant in the western city of Pune. Continued...