Mr N Chandrasekaran, chairman of Tata Motors, recently stated that all their passenger cars are giving losses to the company, barring the India. This comes as a surprise being that Indica is on the verge of being phased-out for better products in the in the future by the company. Tata has been selling the Indica for close to 2 decades and experts think the car should be phased-out because it has done enough for the brand in the past.
Speaking of the Nano, Mr Chandrasekharan said the cars suffers a loss of only about 4% in the passenger vehicle segment. It is likely that Tata Motors will not pull the plug on the Nano at least for now. Tata Motors may be a formidable player in the commercial vehicle segment, but it seems that it may have to pull its socks-up in the passenger vehicle segment as well.
As of now, Tata Motors have recently obtained a contract from the Government of India to manufacture electric vehicles. This may help in turning around the fortunes of the Indian car maker. Even the newly launched cars like the Hexa, Tigor and Nexon could earn profits for Tata Motors.
Tata Motors may be making losses-out of their cars, but it seems in a matter of time, they can turn it into profits. This indicates that there is a good future in store for Tata Motors. Hopefully, it gains profits and does well in all sectors.
To read more on Ratan Tata, Click here
Source: Economic Times