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Tata Motors Revamp Resurrection
Tata Motors recent slip in share market is quite a concern, India's largest auto makers by revenue have succumbed to an unorthodox strategy. The company has come up with a 'One Team, One Vision' strategy to help cut cost. Main focus is to bring in a synergies through economies of scale by sourcing from one vendor instead of many.
Component Manufacturers Association of India, or ACMA, Karl Slym, MD, Tata Motors BSE said, "There's an opportunity to improve for Indian suppliers; some of them are world class, while some are long way away from there." A rejuvenation mission 'ACES' - Accountability, Customer and Product Focus, Excellence and Speed is on the plate. Tata Motors business motto has changed from price over quality to quality over price. Now that's a good revamp strategy.
With a massive vendor range of 1200-1400 across the country, Tata's new strategy includes reducing this huge number - cutting costs and magnifying focus. Another vendor said "The message was that the organization is getting revamped; both on the input, which is the supplier, and the output, which is the dealer. The aim is to move towards leaner and quicker organization which can deliver quality with ACES at the center of it."
Tata Motors currently operates on 3 platforms to source its passenger cars, Nano's and commercial vehicles. This operation is also likely to be filtered to just one. Providing sub-verticals like electricals, body frame, engine and transmission, suspension and brakes, interiors, among others. With the companies market share dropping to 8.91% - lowest in a decade, Tata Motors are keeping their fingers crossed with a Vista facelift and the Manza CS in the next one year. We can hope to see competing models from the old yet stable Automobile Company in India.
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