Tiago – The ‘Real Hero’ in Tata Motors comeback!



Tata Motors has made a huge image makeover in the past 3 years and has helped the OEM slowly gain market share which it had previously lost. Tata Motors in now currently challenging the No.3 Spot in the Top 3 OEMs and is progressively strengthening its hold. So what exactly changed in the recent years for Tata Motors that allowed Tata Motors in the path of regaining its lost glory –

  • Project HorizoNext – Way back in 2013, Tata initiated HORIZONEXT, a four-pronged customer-focused strategy to provide the best customer experience — from best vehicle experience to superlative purchase experience and followed by technology-intense after market service support. Tata Motors products were reeling with Quality-related issues and the Dealership Service Experience was nothing but a nightmare. The HORIZONEXT helped the OEM to work on improving its overall quality levels of the products/new launches and also elevate the dealership interaction experience.
  • Shift from Taxi Segment – Tata’s Indica & Indigo duo which were the mainstay of the OEMs volumes during 2010-2014 was slowly deteriorating the brand’s acceptance amongst personal usage buyers. The company had sought to bring about a change in its brand positioning from an automaker that makes cars for commercial operations like taxis to an automaker who makes cars for personal use. As of today; apart from Zest/Bolt none of the OEMs models are offered in Taxi segment. Tata Motors has completely shifted focus from the Taxi segment and even the upcoming line of products are bound to cater to personal usage buyers (Harrier, 45X).
  • Shooing away from the ‘cheap’ tag – The lesson was learnt from its most ambitious project – Nano. Touted as the world’s cheapest car, did not live up to the expectations in spite of several makeovers and its production was recently halted citing low volumes. Post Nano; none of the new launches carried the ‘cheap’/’cheapest’ tag in the segment. Rather segment-best features were marketed as the USPs (Ex: Harman Music system which was earlier available in high end cars were featured in Zest/Tiago).
  • JLR Support – Jaguar Land Rover’s support in product development has helped Tata Motors to bring a vast improvement in the quality of products introduced in the recent times. It was told that Tata had taken a lot of cues from JLR while designing the Hexa and a lot of JLR pedigree shall be seen in upcoming SUV Harrier as well.
  • Expanding Market Base – With Hexa & Nexon; Tata marked its entry to bigger MUVs & Compact SUVs space. Tata Motors current portfolio of products does not cater to the premium hatches, vans, bigger sedans, larger SUVs segment. However, the future lineup of products shall enable Tata Motors make its presence felt in these segments. By 2019, with a string of new products in the aforementioned segments, Tata Motors hopes to cover 95 per cent of the market!
  • Improved Customer Engagement – Tata Motors has taken huge stride in terms of engaging its customers online and also support the customer communities accordingly. Ex: A bunch of Tata Nexon Owners have joined together and formed ‘The Nexon Tribe’ and is organizing get together drives/meets and the same is backed by Tata Motors. Such associations will further enhance the brand association and loyalty of the customers.
Source
  • Enhanced Dealership Network – Currently Tata has ~650 outlets. The OEM is targeting 1500 outlets by 2020. With the expansion Tata is trying to enhance the customer experience as well in these touch points.



With all these efforts this could well be the strongest comeback in the history of the Indian car industry. However, there is one model which has stood the test of time and has evolved as the biggest enabler in terms of Tata Motors comeback – TIAGO. 1,84,278 units of Tiago’s have been sold in the past 32 months and has contributed to ~40% of Tata’s volumes in this timeline.

  • Tiago’s contribution to the OEMs volumes have increased over the past 2 years and the averages too have shot upto ~8k units/mth in 2018 (v/s 6k units/mth in 2017).
  • Tiago has achieved this feat by overcoming some strong competition in its segment (namely Kwid, Celerio, etc) and is unseen in the industry to see a Brand increase its yearly average post 2-years of its launch!
  • Tiago was also instrumental in helping Tata Motor’s leverage its platform to bring compact sedan Tigor. Though Tigor hasn’t seen significant volumes; the recent facelift may just help it gain the required momentum.
  • Offlate; Tiago is also seeing a jump in its ranking in the Top selling cars list (recently in Sep’18, it ranked 12th)

Tiago has proven its worth over time and it wouldn’t be wrong to say that it has played an extremely significant role in terms of helping Tata Motors revive its brand identity and also elevated the parent as a serious challenger in the fight for the Top 3 OEMs!

Discounts for Oct’18 – Honda, Hyundai, Mahindra, Tata & Toyota

HONDA-

Maximum Discounts upto Rs.1 Lakh available (on BR-V)



HYUNDAI-

Maximum Discounts upto Rs.1.5 Lakhs available (on Tucson)



MAHINDRA-

Maximum Discounts upto Rs.9.6 Lakhs available (on Rexton)



TATA-

Maximum Discounts upto Rs.52k available (on Hexa)



TOYOTA-

Maximum Discounts upto Rs.95k available (on Altis)

Discounts on Maruti Cars for October 2018

Maruti Suzuki Consumer Offer/Scheme for October 2018

Our endeavor always have been to make our analysis better month-after-month. In our this month post of the Offers; we have done a comparative study of the discounts offered by the OEM (Maruti) for Oct’18 v/s the discounts of Sep’18. The purpose of this study is to highlight on how the OEMs design their discount schemes and what logic would’ve been used at their end to promote their cars. In Oct’18 scheme highlighted in the aforementioned table; you could see that schemes have reduced in majority of the Maruti’s models. Why is that? Let us explain:

  • Being a festive month (Dussehra in North/West; Durga Puja in East & Ayudha Pooja in South); Maruti is aware that the customers would go ahead with their purchase irrespective of drop of discounts. Hence shelling out more discounts would be avoided and thus the OEM shall save some promotion money.
  • Also discounts would be reduced on the models where the inventory/stock levels are lower. The concept is simple; one would not discount a product where the stock availability is less. Seeing the wholesale trend; the Alto, Wagon R, Celerio, Eeco dispatches were lower in the previous months and basis the festivity the discounts have been lowered in these models.
  • However, Discounts on demand-models like Swift & Dzire has been increased! Maruti has heavily pushed these two models in the previous months to ward off competition (Ex: Swift wholesales in Sep’18 was higher than Alto!). Also Dzire was pushed to dealers to shorten the waiting period citing the success of New Amaze and upcoming launch of Ford’s Aspire & Tata’s Tigor. The diesel models of both Dzire & Swift now has Rs.10k more discount in Oct’18 v/s Sep’18!
  • Considering the upcoming launch of the New Ertiga, the discounts on the old Ertiga have shot up! One can avail discounts upto Rs.70,000 on the Ertiga!

The discount on Maruti models has been highlighted here in Descending Order (Ex: Ertiga has the highest offer for Oct’18 and has been mentioned first)

1. Ertiga: The outgoing Ertiga has now a discount of upto Rs.70,000! The launch of Next Gen Ertiga is on the cards and Maruti would want to liquidate the old gen cars on priority.

Ertiga Diesel discount is increased by Rs 20,000 and total cash discount on Diesel Ertiga is Rs 40,000. There’s also an exchange bonus of Rs. 30,000. Cars older than 7 years gets Rs 20,000 exchange bonus.

2. Celerio: 

Celerio is available with a maximum discount of Rs. 60,000. The AMT petrol and CNG variants gets a cash discount of Rs. 30,000, while the MT variants get a cash discount of Rs. 25,000. There is an exchange bonus of Rs. 30,000 on AMT and Rs. 25,000 on the MT models. For cars older than 7 years, the exchange bonus is Rs. 20,000.

3. Alto:

All time best selling Maruti Alto 800 is currently available with discounts of up to Rs. 45,000. (15,000 cash discount + Exchange Bonus of 30,000). All variants of the car get Rs. 30,000 exchange bonus (on old car less than seven years old). If the old car is older than 7 years, the exchange bonus is Rs. 20,000.

4. Wagon R: 

WagonR is currently available with a cash discount of Rs. 25,000. Additionally, there’s an exchange bonus of Rs. 25,000 on the petrol AMT and Rs. 20,000 on the MT Variants. The exchange bonus is Rs. 5,000 lesser for cars older than 7 years.

5. Swift & Dzire:

Swift petrol is available with Rs. 15,000 and diesel with Rs 20,000 cash discount. Discount on diesel variants increses by 5,000 comapring to last month. Exchange bonuses on the petrol and diesel Swifts stand at Rs. 10,000 and Rs. 20,000, respectively. However, this bonus reduces by Rs. 5,000 on cars older than 7 years.

Dzire and swift gets the same offers