MUMBAI: Tata Motors Ltd, India's biggest automaker by revenue, plans to reorganise its manufacturing process, reduce the number of suppliers and increase exports, its newly-appointed CEO said on Thursday, in a move to revive its loss-making domestic unit.
Guenter Butschek, 55, who assumed charge about a month back, said in his first media briefing he plans to start by refining the company's brand identity.
"We would like to effectively redo the entire setup of Tata Motors as far its structure is concerned, the processes are concerned and when it comes to the level of manufacturing, the equipment and tools are concerned," he said.
A former Airbus Group executive, Butschek has been tasked with turning around Tata's tumbling sales in India, and he has his work cut out.
Tata Motors' domestic passenger car sales and market share roughly halved in the past two business years and profits have long been propped up by its luxury brand Jaguar Land Rover (JLR) . Butschek does not oversee JLR operations.
The Indian car maker has struggled to shrug off its downmarket image since releasing the Nano mini-car seven years ago for under $3,000, and its cars have long been used as taxis, putting them out of favour with young buyers.
Few new models in the intervening years, materials-related quality issues and the need for frequent servicing added to falling sales.
In the 11 months to end-February, the company's sales fell 4 percent compared with a 7.5 percent rise in total passenger vehicle sales in India over the same period from a year ago, according to industry data.
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