Wednesday, October 5, 2011

Its Tata Again...

Monday, March 7, 2011

A Melody, yet to rock...

All that I am going to talk, make your pardon, write, about is the Aria from Tata . After the grand opening in October 2010, this was the one vehicle that was expected after the Nano from Tata's stable. When it was launched I did mention about the product and the serious doubts I had about its success in the Indian market. 
Before discussing further lets just have a look at the Indian Utility vehicle scenario for the last four months.

Data Courtesy: Indianautosblog.com

Though this chart puts all the vehicles irrespective of its target segment, lets focus more on the Innova, Xylo and Aria which are targeted to the same set of customers.I need not explain the scene much. Its clearly the Innova that is the undisputed leader in the segment inspite of Xylo and Aria taking it head-on. And the difference in sales is huge that Innova does not have any threat in the near future. Aria is not even 10% of what Toyota sells in this segment. 

Lets review the basics and see where/what exactly Aria lacks. 

Coming to the Product, definitely even a layman would agree Tata had offered more than the Toyota.  Though the build quality doesn't seem to be a problem ( this has been the best from Tata yet), I still leave it to the customer to decide on which has a better build quality. The Promotion and Placement too doesn't seem to be a problem as Tata has a very good network next only to Maruti Suzuki and the Tata Ads, be it ATL/BTL, are one of the best in the Automobile industry.

So, what about the Pricing? This is one which had a problem since the launch. 12 - 14 Lakhs for a cross-over from Tata is what customers think. May be the full time 4X4, GPS, Head mounted LCDs, 6 Airbags, Climate control, Audio control on the steering wheel, all of these could have been on the top end variant or may be an addition package. Whoever wants these could have/would have opted for it. Removing these features would have reduced the price to the 10 - 11 Lakhs range which is in the league of Innova and the Xlyo and this would have made Aria a serious contender for a family mover. 

Then comes the Positioning. As I wrote earlier about Toyota with Etios, its the same concern with Tata too. When people see your brand as one and you claim no you are different, there is a serious problem. And you cannot appeal to two different set of customers. This might put the brand under huge risk. When the customers see a Sumo Grande and a Safari along with Vista and Manza which are very competitively priced for the masses and still offer the best Value For Money, definitely the ARIA with its premium will get a big NO. 

So immediate corrective measures for Aria to rock volumes, trim the product, reduce price accordingly and re-position it.

And why did I name Aria as a melody in the title of this post? Thats because, the Italian meaning for Aria is Melody.

Thursday, February 10, 2011

The Josh is now Gone ?

I still remember 1998. There were three major brands from 3 major auto giants. Opel came with the Astra, Fiat introduced the UNO and Ford came with the Escort. Though the first two did some decent numbers, while Escort failed miserably due to the high cost of ownership. It was then Ford went back did its homework again and came up with Ikon, a true ikon for Ford till 2010 when Figo has changed the fortunes for Ford.


Ikon was first introduced with a petrol engine and then with the TDCi diesel engine. Later the branding for the car was done as 'the Josh machine' which created a niche for the car among driving enthusiasts. But the car did deliver on what it promised. A true brilliant driving experience. The diesel engine also became an instant hit among the mileage oriented Indian customers. 

In spite of all this, Ford always had a negative perception of high ownership costs, thanks to the Escort. People always perceived the brand as a rich mans baby. But Ford always tried to change the perception by offering maintenance offers from time to time. But after the Ikon, the Fusion again was a miserable failure failing to meet the demands of the customer in that segment. 

After a long time, it was the Fiesta that resurrected the fortunes for Ford in India. But those days, no one would have imagined that its the Fiesta thats going to drive away the Josh machine forever.

It is happening now.

Fiesta is taking a new 'Classic' form all set to replace the Ikon. Is the company is trying to downgrade a premium sedan to the entry level sedan? For what?

Wait...

The new 2011 fiesta is all set to roll in the second half of the year. So Ford is trying to milk the cow (Fiesta)to the fullest. But in its current form at this price range it is not possible. So the Ikon which sold Zero units in Jan 2011 made way for profits to the company despite a major facelift recently. So, the company has strategically phased out the ageing Ikon to let its customers go Fida.

Lets see how the new Fiesta is going to take it from where the current Fiesta has left the stage.

Friday, January 7, 2011

Tata's New Venture

When we say, 'A brilliant piece of engineering', it necessarily need not be the fastest car in the world or the costliest car in the world. It can also be 'Intelligent engineering'.

When manufacturers actually fail in making a good sedan from the available hatchback (Courtesy: Swift Dzire) how many  in the world can actually build a proper passenger vehicle out of a successful commercial vehicle?

Once again, Tata has done it. This time its the all new Tata Venture, launched first in Rajasthan. Originally developed from the successful ACE platform, it actually doesn't look like one barring the front grill and the headlights. With the only available and affordable MPV on Indian roads, Omni, Venture is sure to get big with its proven diesel engine developing 71PS and returning an ARAI approved mileage of 15.42 kmpl. 



May be this is a Blue Ocean strategy from Tata, creating an all new segment - affordable diesel MPV, which was not available in India leaving the competition behind. Though Tata does this without an all to-gather new technology or platform, the way they integrate the available resources to creat an out of the box design is what proves to be intelligent engineering.

Available in flexi seating options, 5 colours, all necessary safety features, radical exteriors, this MPV is nothing short of a passenger car. Kudos to the R&D team.

In 11 years, the company has definitely got better in engineering and has mastered the art of understanding what India wants....I definitely see a bright light....