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Tata Motors should be more mature by 2020: Ratan Tata

By Motortrend India Staff   |   19 June,2011

Tata group chief Ratan Tata has said by 2020 Tata Motors should be “more mature” and have the capability to develop products with “reliability, finish and technology” as it "may still be sub-scale by international standards" at present.

In an interview to market research firm JD Power’s report on Indian automobile industry, Tata said the homegrown auto major wants to bring in world-class products in the next decade to meet customers’ needs.

“I think we have economies of scale in some of the segments in which we operate, but on the whole, we may still be sub-scale by international standards. My aim for Tata Motors is that we should have the capability of developing good automobiles in terms of reliability, finish and technology,” Tata said in ‘India Automotive 2020: The Next Giant from Asia’.

He said the company’s endeavour to develop products with better technology has been hampered by the abnormally high prices of critical components such as automatic transmissions.

The company is also finding it economically unviable to import the crucial components, which are not easily available in India, because of very high customs duty. For this purpose, Tata favoured cutting import duties on vehicles and components coming from overseas.

“If the tariff barriers go down, we may have the luxury of buying a product to fill the gap in our range, and not develop a product, which is very expensive and wasteful for us,” he said.

He hoped that by 2020 Tata Motors should be “a more mature company with better products, newer technology and wider range of products to suit customers’ needs". When asked about the role that the British subsidiary Jaguar Land Rover is likely to play in Tata Motors’ growth, the industrialist said there is a possibility of “great synergy” between the two firms in engineering and development area.

Going along in the future, JLR will find an inexpensive way of doing something, while Tata Motors will find a better way of doing something, he added.

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