Tata Motors steps on the accelerator for new model launches

Multiple offerings from the newly-formed electric vehicle company coupled with an even higher number of launches from the standard passenger car division will push Tata Motors to comfortably exceed its traditional run rate of new model launches in a year.

The Mumbai-based company, which beat Hyundai in monthly sales to clinch the second spot in the passenger vehicle ranking in December, has planned a series of launches in the short-term to further bolster its sales even as its factories are being run at near peak levels.

Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said, “We had announced in the past of doing two new launches every year since we were in the process of revamping our portfolio then. But now we have electric vehicle launches as well; one or two models every year. There will be launches in ICE (internal combustion engine) vehicles. Excitement can come in different forms. There will be launches in white segments, there will be additional powertrains like CNG.”

In a short span, Tata Motors launched three new models — Punch, Safari and Harrier — in the SUV segment. However, the company is going for more launches in this segment as demand remains unabated for such body style. In the EV segment, there are multiple launches planned in the sub ₹10 lakh segment with a comparatively lower drive range than its flagship electric product Nexon EV.

Tata Motors’ two leading vehicle platforms — Alfa Arc and Omega Arc — are built to accommodate electrification. The Punch, the company’s first SUV on the alfa-arc platform, will get electrification alongside the Altroz, premium hatchback, which is built on the same platform.

Chip shortage

Due to ongoing shortage of semiconductors and other components there has been slight delays in new launches. The iCNG range on the Tiago and Tigor, for instance, were supposed to be launched a few months ago but due to the chip shortage the launch was put on hold.

“We were supposed to launch the CNG models a few months back but we had to delay it because of chip shortage. There is the urgency of bringing certain new products within certain timelines otherwise you miss certain opportunities. We have sufficient comfort of having built some inventory of parts needed for the CNG range and there has been some degree of comfort in this quarter compared to last two quarters,” Chandra added.

To manage new product launches, Tata Motors had rationalised the number of chips consumed by every vehicle produced in order to keep its production lines running. Chandra, however, admitted that the strategy did not work in all the cases but proved very favourable overall.

“We had attempted that in certain cases where it was possible. But it has not been possible in all the cases. There has been certain attempt which have failed but in certain cases it has been a breakthrough for us. And therefore, it has been one of the key levers how we have been to negotiate the semiconductor crisis better,” Chandra added.

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