Indian commercial vehicle maker Tata Motors has started reducing discounts it offers on trucks to protect the margins, a report by The Economic Times said. With fewer discounts, the company has kept the maximum retail price constant, leading to an increase in the effective market operating price.
"From September onwards, we have taken a decisive step. We are moving from a push system to a pull system," Girish Wagh, executive director at Tata Motors, told ET. "The journey has not been easy. The customer's mindset has become like that. We are spending time on communication with customers, financiers and channel partners."
This company sells over 50 per cent of all the medium and heavy trucks in the country yet its margins have remained thin, the report added. In 2022, the company brought Mckinsey & Co on board to restructure its commercial vehicle business for better profitability.
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