- Indica compact car wins customers from market leader Maruti Udyog Ltd.
- Net income may jump 30 per cent to a record 5 billion rupees ($111 million)
- Sales may rise 22 per cent to 65 billion rupees
- Tata Motors’ annual profit may rise 13 per cent to 15.71 billion rupees
- Tata Motors sold 48,361 passenger cars in the quarter, an increase of 14 per cent from last year, giving it an estimated 19 per cent of India’s car market
- Tata Motors, which earns almost two-thirds of its revenue selling trucks and buses, is also introducing new commercial vehicles, such as a 1-ton mini truck, the Ace.
(Financial Express, May 15)
And the good news keeps rolling in for Tata.
On Saturday, Rediff reported that the Ace model, launched in May 2005 as the base model in Tata's commercial vehicles segment, has surpassed the company’s target of 30,000 units in its first year of operations.
Tata's Ace was introduced as a competitor for three-wheel vehicles that have a truck bed to carry cargo. The company decided to focus on the ROI-sensitive customer who would be willing to pay a slightly higher price, but would require lower operating costs. Tata Motors also had to address a key concern of commercial vehicle buyers - lead (time taken to travel a distance) and load (weight it could take). Hence, the Ace was built to achieve top speeds of 64 kmph compared to 50-56 kmph in the case of three-wheelers.
With an aggressive pricing strategy, Tata Motors launched the Ace in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, and Maharashtra where 70% of the subcontinent's three-wheeler sales take place. At a value price point of Rs 220,000, the Ace was targeted to attract buyers who would otherwise buy three-wheelers at price points from Rs 120,000-Rs 190,000.
Keep an eye on this stock.
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