Carmakers unveiling new vehicles at an auto expo is nothing new. But when the showcased models are part of a make-or-break turnaround, they draw more attention. Like in case of Tata Motors Ltd.
The automaker will unveil two concepts— H5X and 45X—at the Delhi Auto Expo that begins tomorrow to win back buyers. The H5X, a sports utility vehicle, will help compete with Mahindra and Mahindra Ltd., Guenter Butschek, managing director and chief executive officer at Tata Motors, told select reporters in Delhi. He didn't give details about 45X.
Both the cars will be available in battery-powered versions and will comply with Bharat Stage VI emission standards, said Butschek. Tata Motors will launch H5X in early 2019 while the 45X will hit the market later next year.
Tata Motors is India's No. 4 carmaker with a share of 7 percent in a 3-million-a-year passenger vehicle market led by Maruti Suzuki Ltd. Hyundai Motor India Ltd. and M&M follow in the second and third spots. The Tata Group company's domestic passenger vehicle share fell to a low of 4.2 percent in 2012, before regaining some lost ground. That was aided by launches like the Tigor sedan, the Tiago hatchback and Hexa SUV.
Also Read: Tata Motors' Profit Misses Estimate On Weakness In Jaguar Land Rover
The two new vehicles will be key to the fortunes of the owner of Jaguar Land Rover in the domestic market, given that it will comply with the new emission standards that roll out in April 2020.
The two platforms are agile, light and modular, allowing a high degree of commonality, said Butschek. “They allow us to spread our wings across different market segments much faster and with better economies of scale, de-risking the launches and leveraging the initial investments.”
This is going to give us a complete different play and if it comes with volumes and market share, we are definitely back into the passenger vehicle game in India.Guenter Butschek, MD & CEO, Tata Motors
The H5X is a Jaguar Land Rover's 'Discovery' platform being used for the Indian market. It will now be used to manufacture five and seven-seater SUVs.
Shares of Tata Motors ended 5.45 percent lower on the BSE today compared with the 1.7 percent decline in the S&P BSE Auto Index.
Electric & Hybrid Vehicles
Tata Motors said the government should enable economies of scale and investments to meet its target of making all vehicles electric by 2030. “If the policies are clearly to focus electric vehicles, then by 2026, nearly 20-25 percent of the new registrations every year would be electric passenger and commercial vehicles,” Butschek said. He expects India to be 9 million passenger vehicles market by 2026.
He also pitched for removing incentives for hybrid vehicles. “To attract investments in building the electrification infrastructure mobility in the country, you need to put the emphasis on this one (segment),” he said. “You don't have to incentivise me to provide hybrid solutions because my incentive for a hybrid solution is to meet the regulatory environment, otherwise I will be out of business.”
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