Tata Motors plans to pare some models to salvage sales

Tata Motors plans to pare some models to salvage salesIndian auto giant Tata Motors Ltd. has plans to pare some models in a bid to change perceptions about quality and arrest declining market share.

Karl Slym, managing director of Tata Motors, admitted that the company was suffering a perception of poor quality, which affected the company's sales across almost all segments.

In a recent interview, Slym said, "There's potential for pruning as we bring in new products, as well as to make sure we have a portfolio that is all performing."

The company enjoyed a very strong demand for its Nano, the world's cheapest car, in 2009, but the car lost all of its charm after some Nanos caught fire. In the utility vehicle segment, the company's sales slipped to 9 per cent.

Tata Motors' renowned Jaguar Land Rover unit is also suffering a decline in sales for the past few years, partly due to tough economic conditions in European markets and partly to concerns over quality.

JD Power & Associates' recent report pointed out that Tata's Sumo utility vehicle and Indigo sedan had more quality issues than the average compared with comparable products from rival manufacturers Maruti and Toyota. The report added that Tata was losing ground to rivals because its products lacked both quality as well as new variants.

Stock in Tata Motors gained 1.4 per cent to Rs 266 a share in the recent trading at Bombay stock Exchange (BSE).