Tata Motors, the auto unit of salt-to-software conglomerate Tata Group, has finally found the right product mix to see its sales soar.
In June it edged out fellow Indian competitor Mahindra and Mahindra for third position, behind market leaders Maruti Suzuki and Hyundai, Times of India reports. It sold 18,213 units in June, against 18,137 sold by Mahindra and Mahindra.
In the first quarter Tata Motors sales surged 52%, turning over 52,937 passenger vehicles, while for Mahindra and Mahindra the rise in sales hit only 9%, though its sales volume remained higher at 60,779 units.
Tata Motors hatchback Tiago and mini sedan Tigor are driving up its car sales, while its compact SUV Nexon keeps the momentum going in the utility vehicles segment.
Of late Tata has made efforts to weed out non-performing models like the Nano and reduce the number of platforms being used. At the same time work has been done to control costs, improve overall quality and streamline its supplier network. They have also concentrated upon making sure model lines feature younger and newer vehicles.
Despite also bringing in new models, Mahindra failed to gain traction with them, and the company continues to rely on volume sales of its ageing Scorpio and XUV500 lines.
June 2018 saw healthy growth for most car companies as sales in the corresponding month of last year were subdued due to the implementation of GST from July 1, 2017.
Maruti saw volumes grow by 44% to 134,000 units, while Hyundai posted 21% growth and sold 45,371 vehicles. Honda, which recently launched the next-generation entry level sedan Amaze, saw unit sales in June surge by 37% to 17,602, while Toyota sold 13,088 vehicles in the same period.