Need is to turn around Tata Motors domestic biz: Chairman N Chandrasekaran

Tata Motors Ltd Chairman N Chandrasekaran has said turning around domestic business of the company is “the need of the hour” as it has suffered from delays in new product launches, lack of adequate response to competition and an unsustainable cost structure.

“In the domestic business segment, business turnaround is the need of the hour and management is working with renewed focus and energy to improve our market share, reduce our cost base, streamline the supply chain and ensure launch of products on time to delight our customers,” he said. The company’s market share in commercial vehicles (CV) segment has fallen to 44.4 pc from a high of 59.4 pc in FY201112, while market share for passenger vehicles (PV) declined to 5.2 pc from 13.1 pc in the same period, he added. 

“Overall, delays in new product launches as well as lack of adequate responsiveness to the competitive environment and an unsustainable cost structure have contributed to this performance," Chandrasekaran said. Consolidated net revenues declined by 1.2 pc to Rs2,69,850 crore for the 12 months ended 31 March 2017 and consolidated profit before tax for the year fell sharply to Rs 9,315 crore, compared with Rs 14,126 crore in the prior year, he added.