Tata Motors now focuses on quality
DNAIndia: Tata motors (NYSE: TTM) has been a very old and trusted name in India. In the commercial segment TATA trucks are considered to be the most sturdy and reliable. While passing through any national highway in India you can see TATA trucks passing buy loaded with goods (most of the time they are overloaded). The demand for these trucks is still there. Tata has also made it mark in the passenger vehicle segment since entering the market a few years ago. The basic Tata cars were Tata Sumo, Tata Safari, Tata Estate these were all SUV and so were rough and sturdy and here too demand was good. Then Tata launched Tata Indica and Tata Indigo passenger cars, both of these vehicles were sold in black due to heavy demand. These cars were considered entry level vehicles. The demand for Tata vehicles has been so high that quality was kept aside a bit for quantity.
Tata now realizes that and in order to become a global player it now has to focus on quality too. Tata Motors chairman Ratan Tata seems optimistic about it, saying In the past years, the company has suffered from an image of being a volume-driven company with less attention to quality. Undoubtedly, if the company is to achieve its longer term goals, it is essential that it produces and sells vehicles of world class quality and provides service and customer support of a much higher caliber than it does today”
The company is growing rapidly and after making its presence felt in the domestic market, they are now exploring global opportunities and for that quality is a major issue to focus on. The company is growing in every segment and it has also been able to keep the margins intact with the help of cost cutting. This can be termed as a future General Motors of India (without financial issues), you just cant go wrong with Tata Motors, in a country that is growing at the rate of 9% with a huge demand for infrastructure and development work still needed to be done. Transportation is a must and transportation of goods and people is where TATA becomes the old reliable Tata trucks and Tata passenger vehicle and buses.