Tata Maps Plan for Rebound

Tata Motors Ltd., with whose net profit in the fiscal third-quarter plunged 26%, hopes to revive its financial performance with cost cuts, new models and a bigger focus on exports, the Financial Times says.

Tata's revenue in October-December grew 9% to 699 billion rupees ($11.3 billion). But unit sales declined 4% to 127,500 vehicles. Analysts say the company is being penalized for a lack of new products and poor customer service.

Tata introduced its first new domestic model in four years, the small Zest sedan, last August. It rolled out the Bolt hatchback last month and says it will add two new models per year through 2020.

Mayank Pareek, who heads Tata's passenger car operations, tells the FT his top priority is cost reduction. He says results will fund plans to bolster customer car, expand its dealer network and develop new models. Pareek joined Tata last autumn from rival Maruti Suzuki India Ltd.

Tata aims to triple its domestic sales network to 1,500 dealers in three years, according to Pareek. He says the company will introduce free at-home initial maintenance services for new customers. Tata also plans for a "very important" effort to increase exports to Africa and Latin America.