TATA group chief Mr Ratan Tata has said by 2020 TATA Motors should be more mature and have the capability to develop products with reliability, finish and technology as it may still be sub-scale by international standards at present.
In an interview to market research firm JD Power's report on Indian automobile industry, Mr Tata said the homegrown auto major wants to bring in world-class products in the next decade to meet customers needs.
He said that "I think we have economies of scale in some of the segments in which we operate, but on the whole, we may still be sub-scale by international standards. My aim for Tata Motors is that we should have the capability of developing good automobiles in terms of reliability, finish and technology.”
Mr Tata in ''India Automotive 2020: The Next Giant from Asia'' said that the company's endeavor to develop products with better technology has been hampered by the abnormally high prices of critical components such as automatic transmissions.
The company is also finding it economically unviable to import the crucial components, which are not easily available in India, because of very high customs duty.
Mr Tata added that "So we have to keep on developing these components ourselves, which is very time consuming and is not our core business. We want to bring in world-class products and have been working hard to improve the build quality and reliability of our vehicles.”
For this purpose, TATA favored cutting import duties on vehicles and components coming from overseas. Mr Tata said that "If the tariff barriers go down, we may have the luxury of buying a product to fill the gap in our range, and not develop a product, which is very expensive and wasteful for us.”
He hoped that by 2020 TATA Motors should be a more mature company with better products, newer technology and wider range of products to suit customers' needs.
Sourced from PTI