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Tata Motors To Focus On Quality & Not Quantity
Tata Motors is clearly trying to step up it's game to keep up with rivals, become profitable and to create an image that matches that of any international players. It's not just the Nano that is receiving an image makeover, but all of Tata Motors.
It is being reported that under the leadership of Karl Slym, Managing Director, Tata Motors, the company is chalking out several strategies to weed out factors that are restricting its development. Slym has identified three critical factors in this regard.
-Poor quality
-Lack of development of existing models and
-Consumer perception of Tata cars being good only as taxis.
Low quality products is undoubtedly hurting sales of Tata cars, influencing buyers to choose cars from rival brands. It was identified that the problem of lack of quality crops up from there being more than one supplier of car parts.
Reducing vendors
Like all automakers Tata Motors sources car components and parts of all sorts from third party vendors. The problem arises when different vendors supply the same parts, which results in discrepancy in quality. At the same time, it becomes difficult for Tata to track them.
The solution the management has come up with is to assign a single vendor for each component/part, thus giving Tata more control over quality.
At present about 1,200 vendors supply parts to Tata Motors. This number will be cut short significantly, to the region of 300-400, in the next three-four years, in a phased manner.
This will sit well with Tata Motors' new vehicle development plans, which will be centered around its Advanced Modular Platform. The AMP, a flexible vehicle architecture, will support four to eight new vehicles that will be introduced post 2015. Streamlining of operations is what Tata Motors is finally looking at and should start paying dividends once implemented. Until then, existing models will be upgraded.
However, it needs to be seen how Tata Motors plans to catch up with rivals, not just domestic, but international ones, considering it is and will be left far behind the leaders in terms of technology.
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