After the successful run of Maruti Suzuki, reaching the million-unit this year, it is now Tata Motors’ turn to do so. This amidst the dismal show during the past two or three years. The company’s feat is viewed as a global spread of the automobile flavor. The major contributor in this eventual map is the triggering sale of Nano [images], the sale of which is expected to rise to 25000 monthly units. The time slated for this is the dawn of 2011 backed up by the setting of Sanand plant with the capacity of 2.5 lakh units. The current production capacity of Nano is 7000-8000 units a month.
Nano is surpassing the sale stint of Hyundai, which is currently the second largest seller in the country added by the unexpected revival of JLR witnessing a growth of 47% in last month. This makes the net sale of JLR to 57153 units in the fiscal. Tata has been expediting the delivery of Nano- 7700 units in June 2010 alone; however the initial registrations are being cleared from June 2009 itself. Tata Motors is in the Indian car market with its reputed global brands as Jaguar and Land Rover, world class trucks. The sale volume of Tata in 2009 was 2.65 lakh passenger vehicles and this made the net to 4.5 lakh units. Tata had a good stint in the overseas market and when the figures of trucks and buses are compiled, Tata’s overall sale figure goes to nearly 8.5 lakh units.
The industry analysts view the situation as conducive for Mahindra to join this elite group after Tata. M&M is in the vehicle segment with its trucks, MUVs, SUVs and gradual entry into the LCVs. M&M’s target is to reach this million mark, comprising tractors and passenger cars, within four years. In 2009 M&M secured a sale of 1.7 lakh tractors and 3 lakh passenger cars. Taken in a stronger vein, the mark of a million in vehicle market is not an easy task amidst the ever increasing competition and customer awareness. However, both Tata and M&M are pinning on the prediction that the passenger vehicle segment is
soaring to reach the quadruple mark in the coming decade. The study carried out by Ernst& Young for Automotive Components Manufacturers Association revealed that by 2020 the number of passenger cars will be 8-10 million from the current 2 million. This would take India to the third spot after the US and China.
There was an increase of automobile sale growth in India during the last fiscal was 1.9 million- despite the threatening global recession. The analysts forecast that FY 2010-11 will see enormous growth than the one in previous year, a growth of 13% (2.2 million units). The Indian companies reap the benefit by way of reasonable investment and genuine returns. Technology is suitably exploited to romp home the benefit, says SIAM. Manish Mathur, principal at MNC consultancy AT Kearney said that the companies reaching the million mark would display India’s supremacy in employing technology for design, components and planned supply.
Maruti Swift [images], after crossing the million mark last year, is setting up facilities at an investment of Rs1700 crore to increase the sale to 1.4 million units. The major difference between Tata Motors and Maruti Suzuki lies on the nature of products – Tata deals this mark with its trucks, cars, buses and SUVs but Maruti’s exclusive includes only cars. Maruti’s Alto is sold at 25000 units a month, surpassing Tata Indica’s [images] 11000 units and Hyundai i10’s [images] 13000 units. Hence Tata heavily relies on its Nano to supercede Alto [images]. Further, the proposed launch of new models under Ace trucks may increase Tata’s sale figure in coming months. The current platform of Ace contains the 1-tonne Super Ace, Tata Ace EX and Tata Ace. The refined versions of Tata Ace are on the cards now and will be on roads soon.