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Old 2nd March 2006, 14:44   #1
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Default Huge Price Cuts for Indica Xeta

I just checked with the Tata showroom in Pune for discounts on the Indica Turbo. On enquiring about discounts for the Xeta I was shocked to hear the on-road prices

Indica Turbo DLG - 4.11 lakhs (around 20K off)
Indica Turbo DLX - 4.43 lakhs (around 10K off)

Indica Xeta GLE - 2.89 lakhs (was 3.05 earlier)
Indica Xeta GLS - 3.09 lakhs (was 3.30 earlier)
Indica Xeta GLG - 3.34 lakhs (was 3.54 earlier)
Indica Xeta GLX - 3.63 lakhs (was 3.84 earlier)

The Indica Xeta incidentally didnt get any excise rebate since it didnt qualify Chidambaram's small car requirement. Its funny how Tata's could still reduce the prices by around 20K across all models. The Xeta now can seriously threaten the likes of Alto's, WagonR's and Santro's. I guess they only need to market and support the product properly.
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Old 2nd March 2006, 16:03   #2
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Revised Xeta prices is a killer. How did they manage this? It does not qualify for revised excise duties and the import content on this car is high enough to enable a 20K cut in prices.

Either they were making a lot of profit on this, or they are trying to sell as much as possible so that the product(Xeta) doesn't bleed. Imagine having sales numbers which does not even justify the extensive campaigns they just ran. Add to that the development/engineering costs which they would have incurred.

Guess they really didn't have an option.
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Old 2nd March 2006, 16:33   #3
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Hmmm... Tata has actually managed to reduce the price on Xeta. This is something very similar to what they did at the very initial stages with the Indica brand itself.

Someone said on a different thread (and very rightly so) in those days the more they sold the Indica the more they use to loose. The selling price was not sufficiently covering the development and then the production cost of the car. And yet the Tatas took the gamble. That was because they knew that the handicap was that Tatas were not known as passenger car makers. They had to sell against the ever popular Marutis and the newly introduced Hyundais. Both were bigger in brand terms. So they had to get the initial volumes.

Today we know what a big and yet successful decision that was. People saw more and more of the car on the roads and they felt assured that if so many people are buying it then it is most probably ok. So Indica volume kept going up and of course the prices along with that. Today the ubiquous Indica diesel sells at 4L+ prices with ease. The whole thing at that time was a very well though out marketing plan which probably just went under the 'expenses' head for the then new car's development and launch costs. Tatas may very well be doing the same thing now with Xeta.
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Old 2nd March 2006, 16:41   #4
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Steel prices have been going down and so has the duty. but from past few months the manufacturers did not pass this on the the comsumers. Tata will still make a killing of a profit due to the tarriff cut on steel.
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Old 2nd March 2006, 18:07   #5
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They also make steel..............




<<<<<<<<<SHORT MESSAGE WARNING>>>>>>>>>>>>>>
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Old 2nd March 2006, 18:20   #6
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Quote:
Originally Posted by Steeroid
They also make steel..............




<<<<<<<<<SHORT MESSAGE WARNING>>>>>>>>>>>>>>
haha - nice one, steeroid
but i guess that doesnt exempt them from paying tariff to the government
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Old 2nd March 2006, 18:26   #7
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Quote:
Originally Posted by Steeroid
They also make steel..............




<<<<<<<<<SHORT MESSAGE WARNING>>>>>>>>>>>>>>

HA HA HA... Extremely well put Steroid!!
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Old 2nd March 2006, 19:37   #8
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Quote:
Originally Posted by Steeroid
They also make steel..............
A little (why is that smiley so grumpy?)

Actually its only recently that Tata Motors started using Tisco steel. For the longest time Tisco didnt make automotive grade steel. Even today, I would be surprised if the largest tonnage is sourced from there.

In fact, Telco itself split into multiple companies - retaining essentially the forge/foundry, engine shop and assembly line including cowl making etc in house. A lot of the less 'core' component plants etc are independent cos now and after a short initial period, Tata motors will choose from multiple vendors as with other components. This has partly helped them become leaner and more profitable already.

As for Tisco - it was shortened to "We make steel" and the insider joke was that the "make" wold go next (jocularly challenged alert: read the pun )
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Old 2nd March 2006, 21:21   #9
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tata can kill alto sales man awesome seating comfort in indica but fuel efficiency is low as compared to alto but indica is better if u ask me
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Old 2nd March 2006, 21:27   #10
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Quote:
Originally Posted by zenx
Actually its only recently that Tata Motors started using Tisco steel. For the longest time Tisco didnt make automotive grade steel. Even today, I would be surprised if the largest tonnage is sourced from there.
You're right. They started selling automotive steel about 2-3 years back and today they are the largest suppliers to auto cos in the country. They supply Maruti and Hyundai amongst others.
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Old 3rd March 2006, 14:13   #11
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Tata has no choice but to cut Xeta prices as all the cars in it's segment have got the price cut. Unfortunate for Tata, that this price cut is from their pocket while for all others Govt is sponsoring!
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Old 3rd March 2006, 14:23   #12
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Quote:
Originally Posted by numerouno
Indica Xeta GLE - 2.89 lakhs (was 3.05 earlier)

What are the features available in this car? what cc is it?
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Old 3rd March 2006, 16:15   #13
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Hi! here is the price list for indica versions in bangalore.

Price List White BoardW.E.F 01.03.2006

Indica XETA Petrol
Model /Invoice Price /Insurance /Life Time Road Tax/Regn, Transp, other charges/On Road Price Extended Warranty(Optional) /On Road Price

GL 249180 9363 24669 3000 286212 2950 289162
GLE 273090 10185 27036 3000 313311 2950 316261
GLS 292120 10839 28920 3000 334879 2950 337829
GLG 315480 11642 31233 3000 361355 2950 364305
GLX 343200 12595 33977 3000 392772 2950 395722

Indica Diesel
DL 316540 11678 31338 3000 362556 2950 365506
DLE 339210 12458 33582 3000 388250 2950 391200
DLS 357350 13081 35378 3000 408809 2950 411759
DLG 375040 13689 37129 3000 428858 2950 431808
DLX 394730 14366 39078 3000 451174 2950 454124
DLG TC 386840 14095 38297 3000 442232 2950 445182
DLX TC 406530 14771 40247 3000 464548 2950 467498

Last edited by rkg : 3rd March 2006 at 16:18.
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Old 3rd March 2006, 17:37   #14
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Hello People,

I will be booking the GLS tomorrow morning. Can someone give me some tips on the extended warranty part? AFAIK, ext. warranty is given from dealer and not from TATA, so obviously they won't cover manufacturing defects. Is it then worth shelling out 4400 for 30 months.

Please reply urgently.

Thanks .
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Old 3rd March 2006, 17:46   #15
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Quote:
Originally Posted by abdriver2000
Hello People,

I will be booking the GLS tomorrow morning. Can someone give me some tips on the extended warranty part? AFAIK, ext. warranty is given from dealer and not from TATA, so obviously they won't cover manufacturing defects. Is it then worth shelling out 4400 for 30 months.

Please reply urgently.

Thanks .
I got TWO extended warranties on my Safari - 18 months standard + 18 months additional from Tata (unlimited mileage). On top of this I got 12 months insurance-based warranty which is arranged by Tata Motors and the Dealer, making it a total of 18 + 30 months. However, while the additional 12 months insurance-based warranty offers bumper-to-bumper coverage, mileage is restricted to 150,000.

I sought a clarification on whether this 150,000 starts from the point of purchase, but was informed that 150,000 is from the end of the 36 months manufacturer's warranty. I have my doubts, but I've recorded the statement on my iMate (cheeky me!)
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