Tata’s Sales in India Continue to Drop image

In the past six months Tata has seen sales falling for the first time in the last 12 years.

During the first quarter Tata reported a record loss in India, due to low demand for its vehicles. India’s biggest automaker might see a fall of 57%, the largest since 2008 when former Chairman Ratan Tata purchased the luxury units from Ford. During the three months ended December 31st, Tata’s British brands accounted for 72% of the company’s revenue.

Tata has tried different strategies to win customers, such as allowing buyers to purchase the Nano with their credit cards or offering buy-back promotions to Manza sedan. Unfortunately, Tata’s vehicles are considered dated and customers turn to rivals such as Maruti Suzuki. During the financial year ended March, Tata’s passenger vehicle sales in India dropped 15%, compared with industrywide deliveries which rose 2.2%.

“Tata is no longer an aspirational brand and in India, cars are an aspirational purchase,” said Singapore-based Arora. “They seem to be trying to do something about this but those models are some time away, so the big challenge is how do you hold on while the new models come in.”

Source: Bloomberg