Tata Motors eyes Rs 19 bn cost cuts, to launch 50 variants in CV segment
About one-third of these launches have happened in the current quarter
Companies News: Tata Motors is aiming to save Rs 19
billion through cost reduction initiatives
during 2018-19, a number comparable to last financial year. It will launch 50
new variants and products in the commercial vehicle (CV) segment, the backbone of the
company.
The cost savings of the last year came from both the CV and
passenger vehicle (PV) division of the domestic business. Some of the cost
saving initiatives include, bringing efficiencies in procurement of raw
material and components and alternate cost effective sourcing.
“The larger portion of cost
savings came in CV division. The cost reduction we achieved was quite
significant. It helped us to negative the expenses arising out of BS-IV emission norms. The efforts that we took
last year will also bear fruits this year. We can expect a similar amount of
cost reduction at a gross level to happen this year as well. It will help us
absorb some of the commodity price increase this year,” Girish Wagh, head of commercial vehicle business unit at Tata Motors told Business Standard.
He said the company might not be able to pass on all the
input cost increase to customers. “Pricing is based on competitive intensity
and the capacity of customers to absorb it,” he said.
Tata Motors ended
2017-18 with a market share of 45.1 per cent in the CV market, marginally up
from 44.4 per cent in the previous year.
It had lost share for seven consecutive years, from 64 per cent in
2009-10 to 44.4 per cent in 2016-17. “The market share can be increased.
Comments
Post a Comment