Tata Motors sold 18,213 units in June 2018 compared to 18,137 units by Mahindra. The perception of customers towards Tata Motors began to change with new launches
Tata Motors has been working very hard over the last couple of years to make a comeback in passenger car market. The results finally started to show up since last year and the company has now beat Mahindra to become No.3 car manufacturer in sales for June 2018 which is an incredible achievement.
Tata Motors sold 18,213 units in June 2018 compared to 18,137 units by Mahindra. Even though the lead is small, the company was aiming for third spot since they took fourth position from Honda couple of months back. One of the reasons for strong sales is that the lineup is young compared to its competitors, which is helping the Indian manufacturer to bring lots of young customers.
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The Indian manufacturer was posting negative growth and losing money each month until 2016 then the company appointed former Airbus and Daimler executive Guenter Butschek as CEO and MD of Tata Motors. He joined the Indian manufacturer in February 2016 and created a plan to make a come back in the passenger car market.
First he discontinued models which are not performing well then the number of platforms was reduced, quality of materials used in production improved, controls cost and supplier network improved along with introducing new models. These improvements are evident in the first new generation product from Tata Motors which is Tiago hatchback.
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The Tiago helped the company to bring back existing and new customers then Tata Motors followed up with Hexa, Tigor and Nexon subcompact SUV which is selling really well. The perception of customers towards Tata Motors began to change. Tata Motors further strengthen top level management with former Maruti Executive Mayank Pareek as president of passenger vehicles.
Tata Motors posted 52 percent growth in April-June 18 compared to just 9 percent by Mahindra. But Mahindra is leading in sales volume for first quarter of 2018 with 60,779 units compared to 52,937 units by Tata Motors. Mahindra is heavily relied on Bolero, Scorpio and XUV500 to drive volumes as other models are not doing well.
The second half of 2018 is looking good for Mahindra as the company has two all new models coming to market – one in compact SUV segment and another in MPV. They will help the SUV maker to retain third position from Tata Motors as they don’t have any new launches till the end of this year as the next launch is H5X SUV early next year.