In a letter to shareholders, Mistry said the company is also working on various other initiatives including enhancing customer experience to grow more profitable.
"Tata Motors is working on a strong pipeline of new products and technologies keeping in view the changing market, customers' aspirations and regulatory needs," Mistry said.
The company is at an inflexion point with its entire product portfolio being revamped with relevant and exciting products for the target customers, he added.
"Initiatives on cost-erosion and customer experience are being pursued with great rigor to help transform the organisation into a more competitive and profitable business in the coming years," Mistry said.
Further to ensure long-term competitiveness, the company has taken several steps under the Horizonext strategy- new products, quality improvement and enhancement of the consumer experience- that will help improve sustainable profitability of the business in long-term, he added.
The company has steadily progressed in all these areas and is inculcating a culture which is intolerant to poor quality, Mistry said.
He admitted that Tata Motors domestic business lost market share in both commercial vehicles and passenger vehicles business due to tough environment.
In FY2013-14, the Mumbai-based firm's passenger vehicle sales declined by 36% while the commercial vehicle sales dropped 29%, registering the lowest market share in the recent years.
Commenting on the prolonged slowdown in the domestic automobile market, Mistry said the industry, after one of its worst years, is seeing early signs of recovery and renewed confidence amongst consumers, particularly with a stable government at the centre.
"We expect a turnaround of the industry by the later part of this financial year with a hope that the government would also come out with policy interventions that support the growth of auto industry, given its critical importance to development of the economy," he added.
Commenting on Jaguar Land Rover (JLR), Mistry said the company remains committed to further invest in the iconic brands to deliver new products in the next five years.
"JLR re-affirmed our confidence in the premium car market and rewarded us by harnessing the opportunities created by rising demand for high-performance luxury cars across the world," he added.
JLR will continue to expand its manufacturing footprint in growing markets like China and Brazil, Mistry said.