Tata group chief Ratan Tata has said that by 2020 Tata Motors should be “more mature” and have the capability to develop products with “reliability, finish and technology” and “may be sub-scale by international standards.
In an interview to market research firm JD Power's report on Indian automobile industry, Tata said the homegrown auto major wants to bring in world-class products in the next decade to meet customers’ needs.
“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,” Tata said in ‘India Automotive 2020: The Next Giant from Asia’.
He said the company is finding it economically unviable to import crucial components, which are not easily available in India, because of high customs duty. “So we have to keep on developing these components ourselves, which is very time consuming and is not our core business,” he said, calling for reduction in import duties.
“If tariffs go down, we may have the luxury of buying a product to fill the gap in our range, not develop it, which is expensive and wasteful for us,” he said.
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”.
When asked about the role of British subsidiary Jaguar Land Rover, the industrialist said there is a possibility of “great synergy” between the two firms.
Tata said: “JLR will find an inexpensive way of doing something, while Tata Motors will find a better way of doing something.”