No plan to reduce headcount due to slowdown: Tata Motors
NEW DELHI: Tata Motors is not looking to reduce workers due to the continued slowdown in the domestic market, as it expects things to get better amid a wave of new products lined up for launch over the next few months, he said of a top company official. According to its website, the main vehicle currently employs about 83,000 people with commercial and passenger vehicles presence.
"We do not have such kind of plan," Tata Motors chief executive officer and Managing Director Guenter Butschek told when asked if the company was looking at rationalising its workforce owing to a prolonged downturn in the domestic automobile industry.
He added that if the company wants to take a step it will take it.
We have been in crisis for 12 months. If I wanted to pull the trigger, I would have done it sooner, Butschek said.
The company is in the midst of new product launches including Altroz, Nexon The EV and Gravitas SUV are in the next few months and there is also a shift in BS-VI customs, he added.
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I am convinced that no matter what the economy does, we are well in order to miss the market ... since the entire product range is set on a different cost base, our profitability at baseline is significantly better after any given time point before. So, I'm pretty positive this time around, Butschek said.
He added that the company is taking all necessary steps in the commercial vehicle (CV) space, which will continue to be its backbone in terms of revenues, to beat the current situation.
Butschek added that the company continues to perform well in the CV space and gives the company a good level of confidence.
We have the right kind of products, our dealer network is fired up and once we think we can really surf the wave, he says.
The company has all kinds of mechanisms in place including cost optimization and quality control measures, to get to the next level, Butschek said.
There is no need at this time (for working reason) because I need the capacity to still be back on the floor the time market will increase, he added.
However, he admits that he has never seen that kind of volatility in the market in his 30-year career to date.
We have to watch carefully, we need to stay flexible and agile and get a better understanding ... whatever we see today is more structural in nature then just spin ... this combination makes future is unpredictable, Butschek says.
During the July-September quarter, Tata Motors ' standalone net sales witnessed a drop of 44 per cent from a year earlier, while it plunged to a net loss of Rs 1,281.97 crore from a year-earlier profit of Rs 109.14 crore.
Explaining the passenger car business, he said the company was warming up to future prospects as it ventured to drive the first vehicle based on its new Alfa platform next month.
The company is set to make a foray into premium compact hatchback segment with Altroz in January.
The auto major aims to cut development costs for the new models as the new architecture can be supported in all types of body styles, including MPS, sedans and utility vehicles (SUVs).
With Alfa's upcoming platform and Omega's already-playing (Harrier) architecture, the company hopes to build on economies of scale and achieve uniformity in products, thereby reducing excessive research and development insights into years to come.
This is the beginning of a bigger journey for us with bigger plays as the 12 leading heads can be built on these two architectures, Butschek said.
The company had earlier come up with a total of six platforms earlier with no common elements in between, he added.
This means that we are set to enter a powerplay of new product launches in the coming years. We will be spreading our wings in new segments over a shorter period of time to spread the market cap to not even 60 per cent of the total market, Butschek said.
The company is embarking on a unique play that addresses different segments, sub-segments and at the same time captures 90 percent of the market within a few years, he added.
This combination (Alfa, Omega) is a unique recipe, we have the same, we build scale while at the same time really getting a bigger addressable market as well. What is the result? A profitable growth and eventually, it will go into the cash-accredited business, Butschek said.