N Chandrasekharan, the Chairman of Tata sons, has noted that every single car model is making losses for the company. and that the automaker will have to improve volumes in order to become profitable. He made these statements in an interview to the EconomicTimes. He also added that the automaker is working ‘diligently and with enormous urgency’ to turn things around and become profitable.
Here’s what he said,
In passenger cars, our cost structures are out of whack. Every single car and model is losing money. It’s important to pick up volumes and try to become profitable. JLR under Ralf (Speth) is doing well and will continue to do so. While if I look at the domestic business what is it that is hurting us — the drop in profitability in a CV and the increasing losses in the passenger cars. We are working diligently and with enormous urgency. I am confident that we will turn it around.
The good thing about Tata’s recent car launches is that they’re doing well, giving the automaker a good chance to become profitable. In fact, the turnaround started a couple of years ago, in 2015, when the Tiago was launched. The hatchback is now Tata’s best selling car, and is nipping on the heels of the Maruti Celerio. Average monthly volumes of the Tiago are close to 7,000 units, and in September 2017, the car did 8,316 units.
Sales have been steadily growing, which indicates that personal car buyers are once again warming up to the Tata brand. However, the Tigor (a compact sedan based on the Tiago) hasn’t as big a success, at least so far. Other recently launched Tata cars such as the Hexa crossover and the Nexon compact SUV are doing reasonably well. In fact, the Nexon has been received well, with Tata already dispatching more than 2,000 units to dealerships, in just a few days of the launch.