M&M and Tata Motors are in the second and third places, which by itself is a huge tribute to the growing stature of homegrown brands. Maruti, of course, continues to be the market leader.It was at the Tata Motors annual general meeting (AGM) in 2012 when its chairman, the late Ratan Tata, told shareholders, “I have great respect for what Mahindra & Mahindra (M&M) has been able to do. I also have a certain degree of sadness and shame that we have let that happen”.
The reference was to the tug-of-war in the passenger vehicle segment where M&M had taken the lead, and this was clearly perceived as a setback to Tata Motors. It was this reality that prompted its chairman to make these comments at the AGM.
I think we have a great deal of introspection to do as to why M&M should be ahead of us and us catching up, on the horsepower we have lacked it, but we should have been there and not them.Late Ratan Tata in 2012
He went on to say, “I think we have a great deal of introspection to do as to why M&M should be ahead of us and us catching up, on the horsepower we have lacked it, but we should have been there and not them”.
Tata was hopeful that things would change going forward. “So I hope the spirit of this company will ensure that we undertake every step to get back to the prominent position and not let a competitor do better than us by being first in everything we do,” he said.
Anand Mahindra, Chairman of the Mahindra Group, in his response, tweeted, “Mr Tata’s comment is extraordinarily humble and generous,” while going on to say that his company took it as “a pat on the back from a big brother” and “it inspires us to work harder”.
Taking on the traditional rival
All this happened over 13 years ago, and much water has flown under the bridge since then. The two automakers, however, continue to make the news, except that there is a twist this time around with Hyundai, traditionally the No. 2 player, now pushed to the fourth position.
M&M and Tata Motors are in the second and third places, which by itself is a huge tribute to the growing stature of homegrown brands. Maruti, of course, continues to be the market leader, and its global alliance with Toyota will only strengthen its hold in the coming years.
Also read:
Mahindra firing on all cylinders, gears up to explore new frontiers
Both Tata Motors and M&M deserve kudos for weathering many a storm over the last three decades when India threw open its gates to multinational carmakers. While Tatas first threw down the gauntlet in the small car segment with the Indica, M&M decided to exit from its automobile joint venture with Ford and focus on SUVs.
The Tata Indica and Mahindra Scorpio clearly demonstrated that Indian carmakers could push the envelope and launch good products at competitive prices. Frugal engineering took another big step forward with the launch of the hugely affordable Tata Nano in 2008. This was also the year when the company bought out Jaguar Land Rover from Ford and had to turn it around in the midst of a severe global crisis.
Also read:
Mahindra’s Pratap Bose on the changing dynamics of design
Expanding into mobility solutions
M&M, likewise, was encouraged by the success of Scorpio and attempted a comeback in cars through an alliance with Renault to make the Logan. A few years later, it snapped up SsangYong Motor of South Korea to expand its footprint in the global SUV arena.
As part of its vision to become a mobility solutions provider, M&M also got into two-wheelers by acquiring Kinetic Engineering’s business as well as trucks through a partnership with Navistar of the US. A comeback with Ford was also planned, but the proposal was shelved subsequently. Today, it is a leaner M&M that is scripting the next phase of its growth story.
Also read:
Hyundai throws down the gauntlet in renewed India push
Tatas and M&M have had their share of challenges and product failures but managed to bounce back with a far sharper focus on business priorities and leading the way in new segments like electric vehicles. While the two companies have every reason to feel pleased about overtaking Hyundai, past experience will also remind them that it is good to be confident but not complacent.
