what u'll do as the CEO of tata motors if govt decides to take away excise duty concessions?

Question

what will your strategy for this?
what type of operational risk you can find?

Answer 1

had i been CEO of tata motors, i will plan my future strategy on reality grounds.

Answer 2

Strategically it is very imporant for TATA motor to get concession on the excise duty to manufacture and sell car at cheaper cost. Specially for TATA's Rs. 1 lakh car project. Therefore if excise concession is not provided Rs. 1 Lakh car project would be at stake, and the cost would come as near as to of Maruti 800. It meance no competitive advantage to TATA Motors.

Answer 3

Contrary to this - Industry is now expecting a cut in the Excise Duty from 16% to say 8%. The Excise duty last year was hovering 24%

Answer 4

Distribute the enhanced cost partially between the customers,and the shareholders. Utilise the opprtunity to enforce some of the economy measures shelved earlier and enforce better cost control. Brain storm the think tank of the company for cost saving, better efficiency in performance of the vehicle so that the enhanced price can be packaged with the enhanced features of the car.

Answer 5

Determine if my car is the best one on the market for the price and ramp up production to increase the volume so to get more profit with a potentially lower price (once the tax is dropped). The problem is that expanding production probably increases overhead costs. If the quality can't maintained and it costs too much to prepare to produce more cars and the cars don't sell, big time losses occur.

Answer 6

No problem, as this will be case with all the manufactures, So, this burden is to be passed on to the customers as other manufacturers will do.
But will have a close eye on situation, also make a goal of manufacturers and ask the finance ministry to reconsider of it.
The price hike will be made uniform as discussing with all the manufacturers,
Unity will lead to success.