MUMBAI: Tata Motors, the automotive business of the Tata Group, is seeking to build on the FY18 turnaround in its domestic operations this fiscal year, betting on a range of new models to consolidate its hold on the competitive industry leaderboard.After the last fiscal year’s 20% volume growth in the local market, Tata Motors is sitting on a cash surplus of more than Rs 2,000 crore, with demand outpacing supply. That should aid capacity utilisation and strengthen the PV operations, with India’s biggest truck-maker embarking upon Turnaround 2.0.Guenter Butschek, CEO, Tata Motors, told ET that Turnaround 2.0 for FY19 is premised on three clear objectives — “win decisively” in commercial vehicles, “win sustainably” in passenger vehicles, and embed a culture of Turnaround deep into the organisation. He did not disclose targets or financial specifics.“Similar to last year, we are working on ambitious stretched targets on sales/market share and financial performance. Our future pipeline is full of attractive products, bundled with the most desirable and customer-centric service offerings and we are strongly committed to deliver with a single minded focus on execution,” Butschek said.Several people in the know of company’s production plan told ET separately that Tata Motors’ standalone operations would be working on a volume plan of 2.5 lakh units for the passenger vehicle business, translating into growth of almost 29%. The commercial vehicle business is eyeing volumes of about 6 lakh units, meaning similar growth of 30%.64394062

With the supply side issue resolved after de-bottlenecking of capacity at its factories, the company is working on a production plan of manufacturing over 2 lakh medium and heavy trucks, which will translate into growth of close to 40%. Led by the new Ultra range of trucks, the company is eyeing an output of over 80,000 units, almost double of last year. The small commercial vehicle segment, too, expects output to rise more than 15%.In cars, the company expects to reap the benefits of the first full year of sales of Nexon SUV, which could see output in excess of 5,000 units a month. The UV portfolio could deliver more than 1 lakh units, whereas the company is confident of building the Tiago-Tigor family to sell about 1-1.25 lakh units in FY19.Unlike in the past, it was Tata Motors’ standalone operations that protected the margins in Q4 of FY18, and not JLR, because of the sustained effort on cost savings and expected operational leverage. People associated with Tata Motors expect a much healthier FY19 and an even better FY20, according to sources ET spoke to on the company’s plans.Tata Motors expects the passenger vehicle market to grow at a CAGR of 8-10% in the coming five years. With new-gen products being available for sale starting this fiscal, Tata Motors is on a strong footing to take advantage of anticipated growth in the broader industry, said an executive, requesting anonymity.