The impact of financial crisis has been experienced by almost all automobile manufacturers as sales have been falling continuously. Tata Motors, the country's largest auto maker, has been one of the companies that have been severely hit by the worsening situation of the economy. Notably, the India-based firm has been battling a double slowdown as it manufactures both commercial and passenger vehicles. However, there was a little bit of a good news as Tata Motors expects to roll out its 2.5 millionth heavy commercial vehicle from its production facility in Jamshedpur. This news was confirmed by A B Lall, who replied to queries in a recent interview.
A B Lall heads Tata Motors' production facility in Jamshedpur, which is located in the Indian state of Jharkhand. Lall, speaking about the firm's performance in the previous fiscal year truly represents the kind of slump the industry has been experiencing. Nevertheless, he was pretty confident of a turnaround and expected Tata Motors to roll out its 2.5 millionth heavy commercial vehicle soon. Industry experts feel that the current situation of the industry is not likely to improve in the near future, given the prevalent scenario.
Lall also mentioned the kind of measures that would be required to battle the situation. Stating that this slowdown is worse than the one India faced around 2008, Lall said it is time for implicating strict policies. In times like these, the primary concern of a company should be the cost reduction, raising the quality and applying intelligent marketing strategies to attract customers. According to statistics, Tata Motors experienced a fall of around 29.96 per cent for July 2013. In July 2012, Tata Motors had sold 73491 units as compared to 51468 units during the corresponding period in 2013.
The past few months have been torrid for the Indian auto industry with the sales continuously declining. This has resulted in companies taking severe actions, such as suspension of temporary employees, stoppage of production, heavy discount on vehicles and schemes.
