Mumbai, May 12: With a dip in sales of its multi-utility vehicles (MUVs),Tata Engineering is now gearing up to take the domestic market by storm bylaunching upgraded versions of its once popular MUV, Sierra, which has lostmarket share in recent months.Tata Engineering, which sold 28,000 MUVs last fiscal against 31,000 unitsthe previous year, is working on quite a few variants of the Sierra toreverse the slide. Sales of the Sierra and the Safari were most adverselyhit last year.
The company, officials said, is no longer "actively promoting" the Estate,which is being produced only against specific orders.
Tata Engineering is also planning a slew of launches in the high-end of theheavy commercial vehicle segment to take on Swedish giant major Volvo."The Sierra today lacks the contemporary looks of many of its competingmodels. We are aware of the customers needs and will launch upgradedversions of the vehicle," said a senior company official.
The move, analysts say has become imperative, as Toyota Kirloskar is makingrapid inroads into the upper-end of the domestic market with itsrecently-launched Qualis. Market leader Mahindra & Mahindra, which is a verystrong player in the rural and semi-urban markets, is also concentrating onaugmenting its position in the top-end as well.
Telco general manager (commercial) Rajiv Dube confirmed that the company isworking on quite a few models. "It is difficult to say as to how many willmake it to the final production stage," Dube said. The company, Dube said,has recently upgraded its top-end Safari with improved plush interiors, buthas kept its price untouched. The vehicle is also being positioned as itsflagship vehicle for the export markets where it has made significantinroads in recent months.
The company's recent upgradation efforts have centred around itslargest-selling utility vehicle, Sumo. Tata Engineering now offers anexhaustive range of models to the customer - Sumo Economy, Sumo AC and SumoDeluxe. Besides, the company also rolled out the ambulance and carrierversions of the Sumo, and has launched the Spacio sporting a 407 engine forthe rural customer.
On the commercial-vehicle segment, Tata Engineering is working on a majorupgradation plan for its entire range of light, medium and heavy commercialvehicles. "The company is weighing the option of making an entry into thetop end of the market.
Although the market for high-end HCVs is quite small at this stage, thesegment will record very high growth in the coming years," seniorvice-president (commercial) Ravi Kant said. Tata Engineering isconcentrating on technologically upgrading its aggregates businesses-heavyduty transmission, heavy duty axle and machine tool and growth divisions-which have been recently hived off as wholly-owned subsidiaries. "Unlike thepassenger car division which would be open to strategic alliances, thecommercial vehicles division would attract the latest technology by ropingin overseas partners for the sub-assemblies," said a company official.
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