We aim to sell two lakh Nanos this fiscal: Tata

Mumbai: Tata Motors chairman Ratan Tata on Friday said the company is targeting to sell two lakh units of its ultra-small Nano car this year.

"Yes, there is a need to increase the volumes...The year is not yet over, and I hope at least we can sell 2 lakh Nanos this year," Tata told the 67th AGM of the company, in reply to a suggestion from a shareholder that company should step up efforts to sell more Nanos.

In July, the company reported a 15 per cent spike in sales at 74,159 units, led by commercial vehicles. During the month, the company sold 5,485 Nanos, recording a healthy 68 per cent rise over 3,260 units in July last year.

The chairman of the USD 100-billion salt-to-software conglomerate also sought the support of shareholders for his successor Cyrus P Mistry, who will take over the mantle of the company in December.

"Cyrus Mistry has all the qualities and values to take the Tata Group in the direction that it has continued in all these years," Tata said.

"I want you to extend the same sort of support and encouragement that you have given to me all these years, to Mistry as well."

Thanking the Tata Motors' shareholders, as this was his last AGM as the chairman, Tata said, "Let me express my deep appreciation and thanks to all employees and shareholders. Without you, the company wouldn't have achieved this success."

Tata Motors, the fourth largest commercial vehicle-maker in the world, will have to single-mindedly retain and protect its market position across all segments, Tata warned.

"Tata Motors will have to understand customers better and will have to pay attention to the product offerings as well as customer support....will have to sustain and retain the market share," Tata said.

"Failure to do so will see us slipping."

Tata Motors India, which on Thursday reported a 49 per cent dip in profit as well as slide in revenue on poor sales, is introducing very competitive range of commercial vehicles, which can compete admirably with international CV makers like Merc, Volvo, and the homegrown Mahindra Navistar, to which it has been losing in sales of late, he said.

"Overseas, the situation has been more hopeful, there has been higher sales of Jaguar and land Rover. So we have a situation where the Indian entity has not done as well as it might be expected to do and the foreign operations has done exceedingly well. Most of us will be proud of what Jaguar has been able to do," Tata said.

There was lot of cynicism and skepticism when the company acquired JLR in January 2008, he reminded.

On the outlook he said that the US will recover faster than Britain or Western Europe from the downturn, and Asia will probably continue to grow.

On the increasing sale of diesel cars, Tata said diesel has really been given the name `fuel of the future', and both in terms of fuel economy and torque, diesel is good.

"Diesel is going to really become the engine of the future, so everyone is working on diesel," he said.