Tata Motors revives TAMO project as profitability returns

Tata Motors revives TAMO project as profitability returns
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New Delhi, Apr 16: As Tata Motors, the country’s fourth biggest car maker, begins to witness fruits of turnaround initiatives started last year, some of its ambitious projects may be taken out of the freezer.
One such project is TAMO, a startup under which the Mumbai-based company showcased a fully electric version of the Racemo called Racemo at the Auto Expo earlier this year.
In the middle of last year, Tata Motors had put brakes on all activities under the TAMO division as it wanted to focus on turning around the loss making stand-alone operations.
The stand-alone entity recorded profits for the first time in five quarters as stringent cost control measures, coupled with a surge in demand for heavy trucks and equally robust desire of its new generation hatchback and SUVs boosted margins. While car sales rose 22 per cent, its truck and bus sales also jumped by 23 per cent in the last financial year.
Putting TAMO on the back burner was one of the early steps taken by the company after its parent entity Tata Sons appointed Natarajan Chandrasekaran as its Chairman. Chandrasekaran wanted the company to first implement cost control measures. However, with a revival in its financials, the company has started work on high voltage electric vehicle projects.
Speaking to a news website, Guenter Butschek, managing director, Tata Motors, had said: “TAMO is a completely different part of the overall transformation game. We launched it for very particular reason and good consideration in Geneva because we wanted to send a statement that we have a product that is absolutely unique with full confidence that this product meets all global standards. And Geneva launch met its purpose. We took it one step further when we brought it to India because that it is a fully electric version.”
The Racemo, a compact 2-seater sports car powered by turbocharged 1.2 litre engine that belts out 190ps of peak power, was put on the back burner.