Tata Ace

In: Business and Management

Submitted By vigneshkrishnan
Words 3196
Pages 13
Tata Motors with their Ace
Based on EMPI-Indian Express Indian Innovation Award Wining Entry by Tata Motors Registered Office: Bombay House, 24, Homi Modi Street, Mumbai Abstract: Tata Motors, India's largest integrated automobile manufacturer today, designed the country's first indigenously developed mini-truck for both rural and urban use. The versatile, high performance and efficient mini-truck, ACE. Key words: Indigaeanous Development, Innovative Organsiation, Mini Trck, Rural Transport

1. Introduction Development of road infrastructure has led to an increase in the distribution of goods across the country, based on the hub and spoke model. The ACE is powered by a unique twin cylinder 16bhp IDI 700cc diesel engine and with its launch the Company introduces a new category in the commercial vehicle segment. Tata Motors recognized the growing trend as well as the need for a last mile distribution vehicle. Keeping that in mind they developed a pick-up vehicle designed to carry larger and heavier payloads in the sub-2 ton category. Simultaneously, anticipated an opportunity in the sub-1 ton payload segment Tata Motors has indigenously developed a reliable and cost effective 4-wheeler for this segment with a water-cooled, twin cylinder diesel engine, making the ACE among the few mini-trucks in the world to be powered by a diesel engine. The Ace is ideal for short, narrow village roads as well as long highway hauls; for small bulky loads as well as large heavy ones. The small exterior belies the power-packed technologically superior engine that gives the Ace high power and high loading capacity. Tata Ace is the small, big machine that is set to change the competitive landscape of the small commercial vehicle segment. A record loss of Rs 500 crore in the year 2000 (2000,Tata Annual Report), set Ravi Kant, the then Executive Director (current Managing Director),…...

Similar Documents

Tata Motor

...Advantage Copyright of Tata Motors. Not for circulation. Commercial Vehicles Business Unit (CVBU) Goods transportation & Passenger transportation Passenger Car Business Unit (PCBU) Passenger Cars & Utility Vehicles Copyright of Tata Motors. Not for circulation. Competition Different markets / segments Customer preferences Different geographies & cultures Growth in market size New regulations Growth Product complexity Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Organisational Pyramid for System and Process Management Copyright of Tata Motors. Not for circulation. Entire CVBU looks up to the same Vision and Mission and follows the same Core Values Copyright of Tata Motors. Not for circulation. Enterprise Systems Model Manual Copyright of Tata Motors. Not for circulation. Automotive Industry Standards Copyright of Tata Motors. Not for circulation. 9 Box Analysis of Product Proposal Copyright of Tata Motors. Not for circulation. Safety Standards Quality Standards Copyright of Tata Motors. Not for circulation. Environment Standards Testing Standards Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for......

Words: 971 - Pages: 4

Tata Ace

...of 11.9 million units in India by 2020, passenger cars will account for 9.28 million units and light trucks another 2.69 million units. When Tata Motors launched Tata Ace, a four-wheel mini truck, in May 2005, it turned out to be a game-changer for the domestic light commercial vehicle (LCV) goods segment. With the Tata Ace, Tata Motors exploited the hitherto vacant space between three-wheelers and upper-end LCVs, and ushered in a new segment known as mini-truck or sub-one tonne — less than 2 tonne gross vehicle weight (GVW) — to cater to newer and smaller transport operators. The phenomenal success of the Tata Ace and the fillip it provided to the LCV segment can be gauged from the fact that until it vroomed into the LCV landscape, the segment had been growing at a sedate pace (around 7-11.5 per cent annually between 1991 and 2005). By contrast, since 2004-05, growth has more than doubled to 22 per cent CAGR (compounded annual growth rate), powered by around 31 per cent growth in SCVs. Remarkably, even the economic slowdown in 2008-09 and 2011-12 failed to make any dent in this trend. In fact, in 2011-12, LCV sales grew by 30 per cent year-on-year, whereas medium and heavy commercial vehicle (MHCV) sales increased at a much more sedate 9 per cent. To be sure, the transportation landscape was fertile for absorbing a product such as the Ace. Until the Ace's advent, the LCV segment was severely under-penetrated due to the absence of suitable vehicles for last mile distribution.......

Words: 3785 - Pages: 16

Tata Ace

...MARKETING STRATEGIES ASSIGNMENT “TATA ACE” CASE STUDY 1) Why do we feel Tata Motors was targeting LCV (Light Commercial Vehicle) segment under commercial segment for TATA ACE? Better highway systems like the Golden Quadrilateral meant that Commercial vehicles in 45+ Tonnes could carry bulk loads covering large distances in shorter time and at lower per tonne per km cost. Government also went about the task of improving road network between medium sized cities and also building all weather tertiary road network covering rural towns- only smaller and rugged vehicles could operate on these roads ( Pradhan Mantri Grameen Sadhak Yojana). Increased congestion & pollution in most of the cities forced the government to regulate the movement of Large/ Heavy trucks (larger than four tonnes) in the cities. - - Tata motors considered the above primary factors in determining the need for large commercial vehicles for the highways and smaller sub 4 Ton category commercial vehicle for operating on both Inter city/ Town and Intra city road network. Ruling out the possibility of developing large commercial vehicles due to the high cost of development and fearing loss of revenues from their niche standard size truck segment, Tata motors decided to develop TATA ACE targeting the Light Commercial Vehicle Segment. Also helping their decision process were some key policy initiatives: Discouraging the use of Old. Polluting & uneconomical vehicles Scrapping of >15 years old vehicles......

Words: 1046 - Pages: 5

Tata Ace Case Study

...trucks, and buses and coaches. It focuses on the freight and transportation sector as its major customers. Top 5 countries for CV industry 1) Isuzu 2) Daimler AG 3) Volvo Group 4) Toyota Group 5) Tata Group 2.What do you understand by HCV, MCV, & LCV and Why it makes sense to target LCV segment for long term survival? Answer: HCV :Heavy commercial vehicle. They carry a weight more than 12 ton. They are basically heavy trucks. MCV: Medium commercial vehicle. They carry a weight of 7.5-12 ton. LCV: Light commercial vehicle. They carry a weight from 1.2 - 7.5 ton. It makes essential to target LCV for long term survival, because of the following reasons: It has closely linked with over all economic climate and had grown at a 22% compound annual growth rate from 2000 to 2005.The sector was also more cyclical than the market for three wheelers or cars.LCV are used for both cargo and passanger movement.LCV price started at rs 350000 and were rated to carry loads of 1.2 to 7.5 tons, LCV’s were typical diesel-power vehicles with 60-100 horse power engines.An LCV could achieve a top speed of 100 kms/hr. and mileage rating of 9-10 km/ltr of diesel fuel.Operating costs for an LCV ranged for Rs.7-9/ton/km. 3. What was the key insignt Tata Motors executive got from the extensive market & consumer research exercise they conducted for understanding the existing 3W market. Who were the players in the 3W industry in India? Answer : Consumers were......

Words: 1597 - Pages: 7

Tata Ace Case Study

...Marketing Management Tata Ace Case Study Solution 1. Analyze the Commercial Vehicle Industry at both Global and Indian scenario? Which are the top 5 countries for CV Industry. Indian Scenario- Indian Commercial Vehicle industry can be mainly segmented into * LCV and * M&HCV industry. LCV consist of three wheelers and four wheelers up to 1 ton capacity. Tata, Bajaj, Mahindra, Force motors and Piaggio are the major players of LCV industry. M&HCV consist of four wheelers such as medium sized pickups, single axle and multi axle buses and trucks. Tata, Mahindra & Mahindra, Eicher, Volvo and Swaraj Mazda are major the players of M&HCV industry. Also, two wheelers, passenger cars and SUV’s were also used for freight transport. Non motorized vehicle sector included bullock carts, bicycle rickshaw, horse drawn carriages, and manual pull carts. The size of the non motorized section was large but undocumented. After many successful years, In India commercial vehicle industry is going through a bad patch due to following reasons- • Economic slowdown • Delay in infrastructure facilities i.e.-Roads Medium and high commercial vehicle industry has seen significant slowdown while LCV industry is still experiencing growth. To overcome the slowdown OEMs have started investing in more research in technology, design, innovation, increasing the reach and increasing the standard of aftersales service instead of investing in expansion of output......

Words: 3116 - Pages: 13


...Tata Motors is one of the crown jewels of the Tata Group, India's premier industrial house. In the fiscal year 2008 the company sold 585,649 vehicles and had a turnover of INR335 billion (Indian rupees) (US$8.4 billion), making it the largest automobile company in India. Tata Motors had ambitious plans to double the number of vehicles that it sold in a mere five years by maintaining its lead in the booming Indian market and by establishing a greater global presence. The case describes Tata Motors' journey to becoming a global contender. It traces the company's business portfolio and strategy, its dramatic turnaround in 2000-2002, its strengthened position in India in both commercial vehicles and passenger cars, as well as its diversification into international markets through greenfield ventures, as well as acquisitions and alliances - notably the Jaguar LandRover purchase in 2008. In January 2008, Tata Motors unveiled the Tata Nano, priced at INR100,000 or one lakh (US$2,500), the cheapest car in the world. By entering two of the fastest growing areas of the automotive industry (the premium and small car segments), Tata Motors company was firmly on the path to becoming a global contender. Learning objectives: The case has the following objectives: (1) introduce students to Tata Motors - an emerging global player in the auto industry from India; (2) understand and critique the company's domestic strategy to date (including the launch of the Nano); (3) review its international...

Words: 269 - Pages: 2

2 Tata Ace

...Global Shared Feature: The Marketing Concept The resounding success of Tata Ace, a mini-truck with an engine capacity of less than one ton launched by Tata Motors, was due to a deep understanding of the market needs and customer requirements. The vehicle was designed after extensive market research, which reflected customers’ requirement for a smaller vehicle that had low maintenance costs, higher driver safety, better driving comfort, and also one that reflected the social status of the owner and the user. Ace was a roaring success in a market that was earlier dominated by three-wheeler load carriers, and was also awarded the BBC-Top Gear Design of the Year 2006. Feature Copy The resounding success of Tata Ace, a mini-truck with an engine capacity of less than one ton launched by Tata Motors in 2005, was due to a deep understanding of the market needs and customer requirements. The company realized that with the booming Indian economy there would be a demand for large multi-axle trucks which could transport materials more efficiently. At the same time, this would also necessitate a demand for smaller vehicles on feeder routes for the hub-and-spoke type of arrangement. This would require smaller vehicles, which are capable of navigating through the narrow roads and by-lanes of cities, small towns, and villages, to service the feeder routes. At that time, the market for transporting small loads over short distances had been cornered by the three-wheeler majors like Bajaj......

Words: 935 - Pages: 4


...An assignment on business policy and strategic management TATA GLOBAL BEVERAGES LIMITED A strategy for the DIVERSIFICATION IN SMARtPHONE BUSINESS Guided by, Dr. S.S. Patil Submitted By, 13323 Ritesh Raut 13324 Yogesh Sathe 13325 Sandesh Shendkar 13327 Amit Bhusare 13328 Harshal Patil 13329 Dev Roy PUMBA (2013-15) TATA TEA LTD.: DIVERSIFICATION IN SMARTPHONE BUSINESS AN OVERVIEW OF TATA TEA LIMITED * TATA Tea was set up in 1964 as a joint venture with a UK based James Finlay and Company to develop value added tea. * From a mere share of 3% in the mid 70's to become India's second largest tea producer, Tata tea has come a long way. (www.Tatatea.com) * The operations of Tata tea and its subsidiaries focus on branded product offerings in tea but with a significant presence in plantation activity in India and Sri Lanka. * The Tata tea brand leads market share in terms of value and volume in India and has been accorded the ‘super brand' recognition in the country. * Tata tea also has 100% export oriented unit manufacturing instant tea in the state of Kerela, which is the largest such facility outside the United States. Current Position of Tata Tea LTD. * After the financial collapse in the year 2000, Tata Tea is now moving forward toward the growth. Currently share value of Tata tea has moved up to Rs 700 per share. * Tata tea has been ranked as the most trusted beverage brand in......

Words: 1596 - Pages: 7


...Executive Memo To: TATA Motors Limited Senior Management From: MBS Group TATA Date: 29 September 2014 Re: Game Embedded Strategy Dear TATA Motors Senior Management, This memo accompanies the presentation given on 15 September 2014 which put forward a case for TATA’s senior management to adopt Game Embedded Strategy (GEMS). The objective is to address the key points of the game dimension for TATA and to offer a set of recommendations focusing on evolution of the game in the future. The game dimension discussed in the memo follows framework T/3, type, technology and time approach, which encompasses the game dimension for the Indian geographical region for low cost compact cars between 2009 to 2014. Background – What Market Should TATA Be In? TATA Motors entered the market of low cost compact cars by introducing the cheapest car in the world with the famous “Tata Nano” in April 2009 at $2,400. With Maruti Suziki India Ltd as the Dominant Incumbent and near rival holding a 49% majority market share of the passenger car market in India, Hyundai Motor India Ltd holding 21% market share, the continued threat of Nissan (1.2%) and Ford India as the Extant Incumbent player with 2.3% market share, TATA Motors played the game against its competitors as the first mover by launching the first ever car of this price range. TATA were thus in an oligopoly market and by using historic data on competitors are able to predict how these competitors will behave with 78% probability,......

Words: 661 - Pages: 3

Tata Ace

...The Tata Ace : Case Study Analysis One of the biggest conglomerates in India, the TATA Group are a name to reckon with . The revenue generated by the TATA group in 2006 was equal to 2.8% of India’s GDP . It has several sectors in IT, transportation , steel etc . One of the biggest revenue provider of the TATA group is the TATA motors which is an independent body and the TATA group holds 32% equity in it . Though TATA motors is such a big company, it showed a loss of Rs 5 billion in 2001 , biggest in TATA motors as well as in the history of INDIA’s motor sector . TATA motor Group MD, MR Ravi Kant decided some drastic measures were necessary to uplift the company once again . The idea of TATA Ace came to the manager of the TATA motor Group MD, MR Ravi Kant when he identified the market need for a commercial vehicle in the Medium Segment. Thus the idea of tata ace was born. India’s small and medium commercial vehicle sector was majorly controlled by the 3 wheeled autos and goods vehicles which were neither good to look at nor reliable and fell in the price range of 100000 – 200000 . Ace was targeted to be priced at 200000 but was subsequently launched at 225000. It was priced at 50% less than other 4 wheeled goods carriers . The project was given to the 30 year old engineer Wagha . There were quite a few reason for Ace’s success : 1. It offered a feel good factor for drivers as compared to 3 wheeled autos etc . 2.Though it has a higher initial cost, the maintenance cost......

Words: 361 - Pages: 2


...Vertical View A Nano Car in Every Driveway? How to Succeed in the Ultra-Low-Cost Car Market Henry Ford’s historic promise in 1908 to “build a car for the great multitude” resulted in the production of more than 15 million Model Ts and created unprecedented mobility for consumers everywhere. Will India’s Tata Motors deliver on its equally bold promise to a new generation of consumers to bring the Nano to market for the “great multitude” at a price of $2,500? T o fulfill his promise “to build a car small enough for the individual to run and care for, [of ] the simplest designs that modern engineering can devise, [and] low in price,” Henry Ford exploited innovative product design, vendor relationships, manufacturing techniques and distribution methods. One hundred years later, entrants into the ultra-low-cost car (ULCC) market have the same agenda in their attempt to build a car with a price tag of $2,500 to $5,000, which is lower in comparable dollars than Henry Ford’s $850 Model T. Vertical View But this is not a history lesson that can be easily repeated. Today, all indicators point to an automotive industry in recession, requiring its leaders to balance the global economic crisis with future market demand. Industry consolidation and restructuring in global markets will accelerate, propelled by the lack of availability to capital and consumer financing, high fuel costs and low consumer confidence. Undoubtedly, a new and improved......

Words: 3565 - Pages: 15


...The Tata Corus merger has made Tata Steel the fifth largest steel manufacturer in the world. This is the biggest foreign takeover by an Indian company. Tata and Corus are both happy with the merger and Tata steel is likely to reap many benefits from this deal. The Tata Corus merger has earned Indian steel giant the status of the fifth largest steel manufacturer of the world. Described as the biggest foreign takeover by an Indian firm by BBC, the deal was values at an estimated $11 billion. The two parties had agreed at a value of 455 pence per share of Corus. Earlier in 1999, Corus was formed by a merger of Hoogovens, a Dutch group and British Steel. Tata steel, on the other hand has been India's leading steel manufacturer. Corus had held discussion with Indian, Russian and Brazilian firms for this merger. The ultimate deal with Tata was described as "the right partner at the right time at the right price and on the right terms" by Jim Leng the chairman of Corus. For the Tata chairman Ratan Tata it was a "defining moment. As a part of the deal Tata also contributed to the Corus pension fund. The Tata Corus merger is expected to provide an estimated $400 million worth of savings to Tata Steel in three years time. The estimated savings till March 2008 is 130 million dollars. A prime reason for such high volumes of savings is the availability of cost saving technology through this acquisition. According to Mr. B. Muthuraman, managing director of Tata Steel, a breakthrough......

Words: 1214 - Pages: 5

Tata Motos

...Tata Motors Case Write-up Executive Summary The Current Situation In May 2005, Tata Motors launched a revolutionary product, Tata Ace, a four-wheel auto vehicle with a successful sale. The Key Problem Despite the decent sale of Tata Ace, Tata Motors has to figure out some way to further gain their market share. Alternative Solutions and Reasoning 1. Targeting the three-wheeled cargo vehicle market in India This means that Tata Motors to modify the Tata Ace to suit for the three-wheeled cargo market in India, which will hopefully help selling 67,500-70,000 pieces with a relatively low profit margin in this segment. 2. Targeting the four-wheeled passenger market The four-wheeled passenger market segment seems to be under-estimated, therefore if Tata Motors can endeavor into this field, it will take a smooth lead position, which helps selling 57,700-60,000 pieces with relatively higher profit margin compared to the three-wheeled cargo vehicle. 3. Targeting the remaining regional Indian four-wheeled cargo market Tata Ace is now sold in only 25% of the India region, and a expand to the whole Indian market will gain 60,000 more pieces sold, with a high profit margin, but low risk, and the product do not need a modification, which is best recommended. The Current Situation The three-wheel and four-wheel auto vehicles are the major part of the Indian commercial vehicle sector. And Tata Motors is the market leader of the four-wheel segment with a market share of 51% in...

Words: 1523 - Pages: 7


...employing 8% of workforce, and declining – producing 40% of GDP. * Urban informal sector – the growing sector – represents the residual. * TATA Motors: This type of labor market has provided Tata Motors skilled and un skilled labor force to grow and expand its operations in India. . Geography and Demographics * India is a country of great diversity with a wide range of landform types, including major mountain ranges, deserts, rich agricultural plains, and hilly jungle regions. * Indeed, the term Indian subcontinent aptly describes the enormous extent of the earth's surface that India occupies, and any attempt to generalize about its physiography is inaccurate. * India shares its borders with Pakistan, Bangladesh, China, Bhutan, Sri Lanka, Nepal and Burma. * TATA Motors: The great diversity, landforms provided sufficient resources to the company and also helped Tata to expand its distribution networks to neighboring countries. Economy * India, with the second highest population globally, possesses a thriving world economy that is on the increase. * India is expected to boost economic growth by at least nine percent annually within the next ten years. * India’s economy offers investors a variety of opportunities. India’s service sector forms fifty percent of its economy; it was an added advantage for Tata Motors. * India’s economy has gone through some ups and downs throughout the past few years, as it has grown to the third......

Words: 378 - Pages: 2

Tata Pest

...Submitted By: Group E1 Members: Aditya Mainak Pooja Prashanth Rahul PORTERS FIVE FORCE MODEL 1. Industry Rivalry . Tata Motors produces vehicles both in the Light Commercial Vehicles (LCV) and the Medium and Heavy Commercial Vehicles (M and HCV) segments. a) Light Commercial Vehicles (LCV)  The market for light commercial vehicles is composed of pickups, vans and coaches weighting up to 3.5 tonnes. This segment has exhibited a consistent growth rate of over 20% in the past 5 years. This growth is expected to continue with the launch of Tata Ace by Tata Motors and similar plans by other players like Mahindra & Mahindra, Eicher, etc. Tata Motors' predominance in commercial vehicles will be challenged by the entry of international brands like Mercedes-Benz, Volvo and Navistar, which have all entered, or are in the process of entering India It faces higher competition in the LCV segment, where its Tata ACE has been a huge success. Internationalization forms a key component of Tata Motor's strategy and it has successfully entered countries having a demand similar to India like South Africa, Thailand and Argentina, mainly through acquisitions and joint ventures. It needs to improve its product reliability, service network and channel reach in order to maintain and replicate this success in other markets. Some of the recommendations for Tata Motors are exploring mass customization options in the Small Commercial Vehicle (SCV) segment, improving brand......

Words: 3275 - Pages: 14

The Gifted | マイリスト | Otome no Sainou