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Tata Motors Bets Big on its New SUV

Tata Motors, who came out with the success of the small car Tiago, is dependent on the new SUV Nexon for a month to get 15,000–20,000 units of sales. Tata Motors’s financial year target is to be among the top 3 car making companies in the country by the end of 2019. Right now it is at fifth place, while Mahindra & Mahindra at number three, and Honda Cars India at number four.

Guenter Butschek, Managing Director of Tata Motors, stated that there is scope for further growth in Tiago’s sales. Volume growth of SUV Hexa and Tigor Sedan is also expected to increase. Next, with the newly launched SUV Nexon, the volume of Tata Motors is likely to reach approximately 20,000 units per month.

Tata Motors Bets Big on its New SUV

Butschek on the occasion of the launch of Nexon said, “There is no doubt that the next level of growth needs to be achieved with Nexon. We believe that this is a great product in terms of pricing, product, design. This segment is growing rapidly and to reach 20,000 units, increase of Tiago’s sales and Nexon’s success is essential.

Nexon is priced at 5.85–9.45 Lakhs (ex-showroom, New Delhi). The SUV’s price has been reduced by about Rs 1 Lakh from Ford’s Ecosport and about Rs 40,000 from Maruti’s Vitara Brezza. Tata Motors, after performing scantily for many years, had achieved good growth of 15% in the last financial year. However, now its growth rate has dropped to 8%. Butschek is confident on the estimated increase in growth with the company entering into the fast-moving compact SUV segment.

However, Butschek did not say anything about the estimation of Nexon’s sales. The vendors associated with the company say that Tata Motors is preparing for a volume of 4,000–5,000 units per month in the coming 3 months. Tata Motors’s have managed to maintain average monthly sales of 14,000–15,000 units in this financial year and is giving a tough competition to Honda Cars, which is India’s fourth position in the market. However, in the first five months of this financial year, the strong demand for crossover WRV has increased Honda Cars’ growth to 22%. Now Tata Motors is expected to move ahead of Honda Cars on the strength of Nexon.

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