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Tata Motors' growth in the passenger vehicle (PV) segment in the past couple of years has been led by the southern market, which accounts for almost a third of the automaker’s PV sales.
The company expects the sales momentum to continue in the region helped by slew of new products incorporating more safety features and network expansion.
“Southern market has been a bellwether for us. For the PV industry, the region’s contribution is about 28 per cent, while for Tata Motors, the South accounts for 32-33 per cent. The region has been contributing like this since last year,” Rajan Amba, Vice-President, Sales, Marketing & Customer Care, Passenger Vehicles Business Unit, Tata Motors told BusinessLine .
Amba attributed the strong growth in the southern market to a slew of new launches, increasing acceptance of the brand, transformative measures in dealerships and marketing campaigns.
While Tata Motor’s PV market share in the country is 10.2 per cent (up from 6.4 per cent in FY2018), it is higher at 12.1 per cent in the southern market. The company claims number two position in Kerala with a PV market share of about 16.2 per cent in the State.
New design, philosophy
In the past 3-4 years, the company’s efforts to reinvent its PV business have met with significant success that the company not only managed to shift the focus to the individual segment from the fleet, but also attracted a good number of young buyers. The product offensive strategy has paid huge dividends as its revamped products packed with features across categories have spurred the sales. The company’s commitment to safety has also been quite impressive as its portfolio comprises the highest number of cars that have been rated top for safety.
“While Tata has revamped its PV portfolio in the past few years with its new design philosophy, its focus on safety features in its vehicles more than competition may attract more buyers in the southern market,” said an auto analyst of a leading brokerage firm. The new range of products and digital measures have brought the excitement back at dealerships.
“We have been blessed with strong partnerships in the southern market. In the current environment, the business is smoother with exciting new products and it is easier for us to focus on various consumer-centric strategies,” added Rajan.
As Tata Motors expects faster growth in the southern region, it has been ramping up its network and has added 70 sales outlets across 53 cities in the region. With the latest addition, Tata Motors has about 302 outlets under its PV network in South India.
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