Tata Motors is expecting slow growth in its car sales until the middle of the fiscal 2012-13, states a senior company official. The company states that its sales strategy has been a success and hence there has been no revision for now. Mr. R Ramakrishnan Tata Motors Vice-President (Commercial Passenger Cars) commented that the growth of the economy has been slow in comparison to projections and has affected the car sales in the automobile sector.
In the fiscal 2011-2012, the company has seen a growth of 11 percent with cumulative sales of 6,26,770 units including the exports compared to 5,67,004 units sold in 2010-11. The overall passenger vehicles growth was reported to be 8.85% in December 2011. According to Mr. Ramakrishnan, much depends on the monetary policy of the Reserve Bank of India which if implements a cut in the interest rates, would encourage customers to make new purchases in the auto market.
Tata Motors is in the process of expanding its dealership network for positioning its Nano small car in the semi-urban and rural areas. It has been offering a low down payment scheme for the Nano which it states has been successful. Four new outlets have also been inaugurated by the company in Hyderabad commissioned by Tejaswi Motors.
