Absolutely. And that is the point.
Aren’t we talking about a life long portfolio? Well, if you can see my first post I suggested equal exposure to Maruti and Tata Motors. Tata Motors being available at cheap valuation and having huge growth potential and Maruti having a stronger moat.
I along with Tata Sons’ and Tata Motors’ top management all believe in the turn around and strong position in the market. Yes, quiet certainly they can’t become the number 1 player but can have a respectable position on the long run.
A brand image that has eroded over times needs significant amounts of time to regain. New age Tata’s are well built product. Service and dealer network is being improved and that is evident. Hexa, Tiago, Nexon and Tigor are all very good products and all doing well in their respective segment. As, and when these products mature in the market brand Tata is bound to get revived. Besides they have now created Advance Modular Platforms which will replace existing 6 platforms with only 2. Resulting in flexibility and improved margins. This will be introduced in the market by 2019 end as the next generations of their existing fleet of cars comes out. Speaking of volumes, the entire fleet of Gypsys by Maruti in Indian Army are now getting replaced by Tata Safari Storme ( first phase contract 30,000), which was a failure in mass market.
As you mentioned ‘Nexa’ I would like to say that is the effort of Maruti to bifurcate their portfolio into luxury and basic cars. They did this to capture the market share that is enjoyed by players like Honda and Hyundai at the 10 Lakhs kind of range. For that it was required to play the role of Nexa as if they were not typical “Marutis” which earlier had resulted in the failure of old Baleno, SX4 and lately Ciaz. Hence that is a fantastic effort. While Tata is more focused on the mass segment, for that you really don’t need Nexa kind of experience. Just excellent customer care and relations would do. Mr. Gunter Butschek is focusing on that.
As you mentioned CV’s and price cut that was merely the effect of BS IV rush. Similar situations hit Ashok Leyland also. That was a temporary set back and both these giants are getting back to normalcy.
Overall, it will take time to turn around but will most likely happen.