Burning rubber: The well-wheeled are on fast track
The Economic Times  — December 1, 2004

It was the day of the Indian tiger. When Praveen Kadle, ED, finance and corporate affairs, Tata Motors, went up to take The Economic Times Company Of  The Year Award, his face shone with well-deserved pride. The Tata group-controlled commercial vehicle and passenger car maker, Tata Motors, has held its own amidst strong competition from foreign majors like Maruti-Suzuki and Hyundai.

"This award comes to us as an encouragement, at a time when we are celebrating our Golden Jubilee Year of automobile production and the company itself has entered its Diamond Jubilee Year. Having successfully overcome challenges, and more so, in recent times, we are now gearing up for the challenges that lie ahead as we prepare to become a global Indian brand," said a proud Mr Kadle in his acceptance speech. 

He was accompanied by his wife, Chetna Kadle. Unlike in the past, when the company won awards for different product categories, this is the first time that the company has got one for overall performance. "At Tata Motors, we look at each challenge as an opportunity and are confident that in the times ahead, we will build on our successes and consolidate our position, both in the domestic as well as the international markets," Mr Kadle assured the gathering. 

Tata Motors has been pushing the envelope and has come a long way from the dark days of FY01, when it posted a huge Rs 500-crore loss. The car division has recovered handsomely and helped the company edge past its rivals in terms of  topline growth. "Our acquisition of Daewoo Commercial Vehicle Company (DCVC) and the recent listing on the NYSE is an indication of our commitment to stretch our boundaries," Mr Kadle said.

Just to put things in perspective, car sales at Tata Motors have more than trebled over the past three years and have given the company a market share of 14% in FY04. "Increased capacity utilisation of both the C V and car divisions, slashing of excess workforce, prudent financial management and vendor rationalisation programmes have enabled the company to generate higher profits," said an official from Tata Motors.

As far as growth in topline is concerned, Tata Motors has evolved at a fast pace over the past three years, aided by the robust growth in the CV industry. Besides, Tata Motors has also seen a stellar performance by its passenger car unit. Tata Motors is preparing not only for the changing expectations of customers, but also for the growing complexity of the business and the operating environment.