TaMo Guns for No. 3 Spot with New Cars

Co aims to sus­tain mo­men­tum gained from Ti­ago’s suc­cess by launch­ing its twin — a com­pact sedan — in March and a com­pact SUV later to ride past M&M and help re­store some of the brand value the group has lost Get­ting Ahead in the Race ...but still re­mains

The Economic Times - - Brands: Creating Desire - Nexon com­pact SUV later IN­DIAN BRAND RANK­INGS 2017 TOP 10 GLOBAL BRANDS

Ke­tan Thakkar & Deep­an­shu Tau­mar

Mum­bai | New Delhi: Tata Mo­tors is ready­ing a twin of its Ti­ago hatch­back, but with an ex­tended boot, for a March launch to take on Maruti Suzuki’s up­com­ing new­gen­er­a­tion Dzire and a face-lifted ver­sion of Hyundai Mo­tor’s Xcent.

Hav­ing wrested the No. 4 po­si­tion in the In­dian pas­sen­ger ve­hi­cle mar­ket in 2016, thanks to Ti­ago’s suc­cess, Tata Mo­tors is now look­ing to un­seat Mahin­dra & Mahin­dra from the third spot. It launched the Hexa cross­over ear­lier this month and has plans to drive in two more fresh prod­ucts in 2017, which in­dus­try ex­perts say may prove to be a turn­around year for the com­pany. While launch­ing the Hexa, man­ag­ing di­rec­tor Guenter Butschek said 2016 was a mile­stone year for Tata Mo­tors and that it ex­pected the prod­ucts in the pipe­line to help ex­tend the “good mo­men­tum we are in”.

Tata Mo­tors has al­ready started pro­duc­tion of the Kite 5, the sedan ver­sion of the Ti­ago, last month. It has man­dated ven­dors with pro­duc­tion sched­ule of 3,000-4,000 units a month, said peo­ple in the know. Though the launch was planned ear­lier, the com­pany re­cal­i­brated the tim­ing to en­sure enough ca­pac­ity for the Ti­ago. Still, the Kite 5 will be launched be-


Tata Mo­tors ready­ing a twin of its Ti­ago hatch­back shift­ing to small SUVs

on Maruti’s new­gen­er­a­tion Dzire and Hyundai’s facelifted Xcent fore the seg­ment lead­ers hit the mar­ket with new prod­ucts, so that it can have a higher mind­share, said one of them. The all-new Dzire and the up­graded Xcent are ex­pected to be in­tro­duced in April-May.

With lim­ited com­pe­ti­tion in the com­pact car seg­ment, the Ti­ago was able to de­liver an im­pres­sive 5,000 units per month on an av­er­age for Tata Mo­tors over the last one year, help­ing the com­pany achieve a 10% share in that space. How­ever, the Kite 5 com­pact sedan will fight it out in an in­tensely com­pet­i­tive seg­ment where an av­er­age of 33,000 to 37,000 cars are sold in a month.

The en­try of Kite 5 also hap­pens at a time when the seg­ment is wit­ness­ing a de­cline, with con­sumer pref­er­ence shift­ing to small SUVs.

Maruti has a lion’s share of the com­pact sedan seg­ment (cars with a length of less than four me­tres) with 60% of the vol­ume, fol­lowed by Hyundai which ac­counts for about 15%.

In­ter­est­ingly, Tata Mo­tors was the com­pany that in­vented the com­pact sedan seg­ment in In­dia, with the Indigo-CS, to take ben­e­fits of lower ex­cise duty. But it even­tu­ally ceded the lead­er­ship to Maruti Dzire.

Tata Mo­tors did launch the Zest sedan in 2014, which got off to a good start. But af­ter the ini­tial burst, sales lost mo­men­tum. With strong brand aware­ness and tail­wind from the Ti­ago, it is hop­ing for a po-

Launch at a time when sub­four-me­tre sedan seg­ment wit­ness­ing a de­cline

Con­sumer pref­er­ence TaMo will To take

sitive rub off on the Kite 5. On Tata Mo­tors vi­sion of go­ing back to num­ber three po­si­tion, Mayank Pa­reek, pres­i­dent for pas­sen­ger ve­hi­cles busi­ness, ex­plained that the gap be­tween Nos 3, 4, 5 and 6 was hardly 3,000-4,000 units a month. With two new prod­ucts and pos­i­tive mo­men­tum from the Ti­ago and Hexa, he is con­fi­dent of at­tain­ing the No. 3 po­si­tion. The com­pany has also lined up the Nexon com­pact SUV for launch later this year or early 2018.

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also launch the this year or early 2018

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