Tata Motors is hitting the brakes on its declining market share in the small commercial vehicle and pickup (SCVPU) segment in India. The auto giant announced a turnaround strategy during its investor day presentation, aiming to reclaim lost ground.
13 Jun 2024 | 9025 Views | By Shahkar Abidi
Tata Motors is hitting the brakes on its declining market share in the small commercial vehicle and pickup (SCVPU) segment in India. The auto giant announced a turnaround strategy during its investor day presentation, aiming to reclaim lost ground.
The company's current market share woes are evident: VAHAN data ...
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Tata Motors is hitting the brakes on its declining market share in the small commercial vehicle and pickup (SCVPU) segment in India. The auto giant announced a turnaround strategy during its investor day presentation, aiming to reclaim lost ground.
The company's current market share woes are evident: VAHAN data shows a drop from 36.6% in FY23 to 33.1% in FY24. Quarter-on-quarter sales data indicate its market share falling from 35.6% in Q1 to a nadir of 31% in Q3. However, a glimmer of hope emerged in Q4, with a slight improvement to 33%. To address the recent slide, Tata Motors pledged to "win back SCV shares" through a multi-pronged approach.
A key pillar of the new plan involves leveraging the rollout of BS6 Phase 2 compliant vehicles. This aligns with the stricter emission regulations and positions Tata Motors to cater to evolving environmental concerns. Additionally, the company will offer a comprehensive range of multi-fuel options, including electric vehicles (EVs). This will cater to a wider customer base seeking alternatives to traditional fuels.
Another crucial aspect, the company pointed out, is the strategic shift towards a B2B2C business model. This suggests a move beyond solely targeting fleet operators and potentially encompasses direct-to-consumer sales and marketing efforts. This can be achieved through usage-based segmentation for differentiated product offerings and sharper brand positioning. Secondly, the company is also looking to create demand generation pivoted on digital modes, leveraging improved data quality and analytics. This will allow for targeted marketing campaigns that resonate with specific customer segments. Additionally, Tata Motors aims to leverage its network to build wider service support and a robust financing ecosystem. This will enhance market penetration and reduce risk for both the company and its customers.
The existing SCVPU portfolio, comprising brands like Ace, Intra, and Yodha, will likely see enhancements or potential rebranding efforts to align with the new strategy.
Meanwhile, it won’t be a smooth ride for Tata Motors to regain its market share. Competitors have been capitalizing on Tata Motors' struggles.
However, the turnaround plan, if executed effectively, could revitalize the company's position in the SCVPU segment.