NEW DELHI: Tata Motors has said that 20 projects of the company, including factories and dealerships, will optimise operations to cut costs and improve efficiency.
As it aims to post sales better than the industry, the homegrown auto major is also planning to launch two new products – a compact sedan and a sports utility vehicle – in the next fiscal.
“Product is a very obvious thing which everyone sees but it is just the tip of an iceberg. There is lot of activity happening below iceberg. We are completely refurbishing our network in terms of processes, people, training which have started giving results,” said Tata Motors President, Passenger Vehicles Business Unit, Mayank Pareek.
Besides new product development, the Tata company has initiated various other internal processes focussed on cost saving, improving efficiency and quality.
“We have identified around 20 big projects in the company. These are called impact projects, which means improvement through action. We have actually pulled out senior people from various teams to work full time on these projects,” Pareek said. These projects began in September 2016 and are on cost and efficiency —which is globally competitive, he added.
Meanwhile, when asked if the company has set any target in terms of cost saving through these projects, Pareek said, “it will be very significant not one per cent kind of stuff” without sharing exact figures.
Commenting on the sales outlook for the next fiscal, Pareek said that the company aims to grow better than the industry which is expected to grow in double digits.
“In this fiscal, the industry will grow at 8-9 percent... if we take the calender year then it grew by 8 per cent last year... I expect the industry to grow in double digits next fiscal and coming to Tata Motors, we will do better than that (industry),” pointed out Pareek.
The Mumbai-based company is present in only 59 percent of the passenger vehicle market in the country, But, there is an immense scope for growth, Pareek added.