<div>The revival in monsoon has had its positive impact on the sales of passenger cars in the country. Most of the car makers who have declared their numbers for June 2015 have registered growth in sales. However, Tata Motors, a company which was out of competition till 2014 has continued to post better growth than others in the passenger car segment on the back of Tata Zest and Bolt with a 44 per cent increase (8,516 ) in sales for June 2015. The growth in the Month of May was also impressive at 32 per cent for passenger cars segment for Tata Motors. The double digit growth for Tata Motors has continued since August last year.</div><div> </div><div>While Maruti Suzuki’s growth remained flat at 0.5 per cent (86,630), Honda posted a growth of 13 per cent in June 2015. Hyundai Motors declared a growth of 8.3 per cent (36,300) on the back of successful elite I20.</div><div> </div><div>The growth posted by Tata Motors has come on the back of sharp planning with the launch of Tata Zest, Bolt and Gen X Nano. The company is offering the AMT (automated manual transmission) technology in its Zest model which has a competitive price of Rs 4.64 lakh (ex showroom Delhi) for its base petrol model. </div><div> </div><div>Not just the technology and the pricing, Tata Motors is also aware of the role that dealership plays in the success of a car. The company has been ramping up its network in smaller towns, besides working on mobile workshops to offer customers vehicle service at the doorstep. </div><div> </div><div>Tata motors plans to open one outlet every day from July this year to add 200 showrooms in 2015.</div><div> </div><div>Back in 2014, everything was the opposite from what it is today for Tata Motors. Company’s domestic car sales fell 39 per cent year-on-year in the year that ended on March 2014 and its market share also dropped to 4.2 percent at end-June 2014 from 10.2 percent two years ago.</div><div> </div><div>Tata Zest, was launched in August 2014, as its first offering in four years in the passenger car segment.</div><div> </div><div>Is Tata future ready?</div><div> </div><div>The company knows it very well that only innovation will help the company survives the competition from the foreign car makers. For a large part of the past decade, Tata Motors was a mute spectator in the market as foreign companies came up with new features loaded with technology in their cars.</div><div>However, with the AMT technology, Tata Motors has tried to compete with the market leader Maruti which offers the same technology in its Celerio and Alto K10 models.</div><div> </div><div>The company has been increasing its R&D spend in domestic operations over the past few years. The company increased its R&D from 3.3% of total sales, to 6.3 per cent of its total sales in FY-14</div><div> </div><div>The average annual capital expenditure over the past three years around Rs 25,000 crore. The company expects to raise it to Rs 40,000 crore in the coming years.</div><div> </div><div>In the coming months, the sales of domestic car makers. Including Tata Motors may come down if the monsoon rains dwindle in quantity, affecting the purchasing power of consumers. But given the long terms strategy that Tata is working on, it looks that the company can only go up as it has already hit the bottom.</div>
