Continuous product development changed the fortunes of Korean carmakers Hyundai and Kia, and Indian carmaker Tata Motors wants to see the same happen to its brand.
Tata Motors passenger vehicles president Mayank Pareek says the group will launch two new models a year under a new $5-billion product development pipeline, stretching “to 2020 and beyond”.
The focus will remain on affordability and low cost of ownership, he notes, with an emphasis on small cars, as well as technology normally featured in more expensive cars.
A new four-pillar strategy called Horizon Next addresses accelerated product development, implementing world-class manufacturing practices, enhancing the customer experience, and providing “contemporary and futuristic technology”.
Pareek places special emphasis on the customer, noting that “we only exist because the customer exists”. Globally, the majority of people buy a new car based on a reference from a friend or family member.
“That is why we are positioning ourselves to be customercentric.”
Pareek is new in his position – going on a year – having spent more than 20 years at Maruti Suzuki.
He is adamant that all improvements at Tata Motors, in India, should also flow through to its export markets, such as South Africa.
Tata vehicles are sold in the domestic market through Tata Motors South Africa, which is 60%-owned by local company Associated Motor Holdings and 40% by Tata Africa.
Pareek acknowledges that Tata passenger cars have failed to excel in the South African market.
Model introductions have been few and far between and the quality of service and product has often been called into question by a driving public spoiled for choice.
“Our past in South Africa has not been good, but the future will be different,” says Pareek. “We need to change perceptions in South Africa. I know this is not a war we’ll win tomorrow.”
He regards South Africa as an “extremely interesting market”, with a number of similarities with India, such as a shared colonial past and a large youth population.
With car sales in India booming in recent years, Pareek is positive the South African market will follow suit, stimulated by increased income and the “human tendency to own a vehicle”.
The current slowdown in the local market will only delay, and not disrupt, this general trend, he adds.
In India, the small-car market constitutes 80% of the market.
Pareek is investigating a number of innovations in the retail and service space, which may one day flow to South Africa. These include smaller showrooms offering a three- dimensional experience of any Tata model, with a centralised facility arranging test drives at the customer’s location, as well as service-on-the-go, which provides car services at the customer’s home or workplace.