[libranof1987]

Now, going by ET's track record, this news should be taken with a rather generous helping of salt.

Tata Motors may phase out old models like Indica, Sumo Spacio - The Economic Times

Tata Motors' cars portfolio hasn't had a month like March in a long, long time, with models like the Nano and the Vista fuelling robust double-digit growth over a year ago.

Still, one swallow won't make the company's summer, and the top brass has been considering a string of alternative strategies to counter lower-thananticipated sales of its flagship models, falling market shares and poor profitability of the automobile business in the face of competition from more contemporary rivals.

One of the options being weighed, said a person with direct knowledge of the matter, is de-emphasising the 14-year-old compact car brand Indica, and replacing it over time with more contemporary models in the same segment like the Vista.

Alongside, production of underperforming brands, like the Indigo Marina, and warhorse models, like the Sumo Spacio, may be stopped.

If true, I just don't get this. Indica is one of TM's key offerings in the most important segment and I'm sure it's the regular Indica which has majority sales over Vista. Discontinuing Indica isn't going to get them numbers!

Half of the commercial MUVs on road are Sumo Spacio and they plan to discontinue that? Again, doesn't make business sense.

We need to tell either Tata or ET that April 1st is long gone.

[.anshuman]

I am not going to believe this because all these sensational news below turned out false earlier:

https://www.team-bhp.com/forum/india...s-gurgaon.html (ET & Maruti disagree on making cars at Gurgaon)

https://www.team-bhp.com/forum/india...-schedule.html (ET says Ford puts Gujarat on hold. EDIT : Ford says GJ Plant is going as per schedule)

https://www.team-bhp.com/forum/india...iant-brio.html (Speculation: Honda Motor plans diesel variant of Brio)

Economic Times has become INDIA TV of newspapers for automotive reporting. Everyday they come out with a sensational news which is later clearly denied by the carmaker by eve.

[Jignesh]

Originally Posted by libranof1987

We need to tell either Tata or ET that April 1st is long gone.

Hello,

Not necessary. This can be very true news & Tata Motors may not be just declaring it officially.

I understand that Indica is selling good numbers, specially in commercial sector, but unless the model is withdrawn, Vista will never take over. Same was the case with Mariti 800, there was still a demand for it, but Maruti conciously started pushing Alto over it.

If Tata Motors does not upgrade the Customers to Vista, someone other company will an example would be old Maruti Dzire will now be available as DZire Tour for commercial sector. Now if the price difference is not much, than Dzire Tour is far better option than Tata Indica for Taxi operators.

Thus Tata Motors will have to find a ways to upgrade the Customers to newer models & this decision may well be based on that thought.

Thanks,

[amrisharm]

Just the other day i read an article in autocar india that stated that TaTa is developing an extended wheelbase Indica hatch to cater to the taxi segment and chauffeur driven Indicas. Think of this model as a hatchback version of the Indigo XL. So to now read this is a bit confusing. I guess this strategy of eradicating the indica and Sumo models must be a long term one which will probably happen after EuroV comes into effect rather than a near term plan.

[sgiitk]

I will not be surprised if at some point of time Tata decide to do away with the old Normally Aspirated and Turbo Charged Indica's and switch over to the Multijet Indica (aka Vista). I know Taxi Wallahs like the NA Indica since it is the cheapest deal going.

[SDP]

Leaving the reliability of this news aside, I do believe that a strategy like this would make sense. Unless the "classic" Indica and the "classic" Sumo don't get phased out, Indica Vista and Sumo Grande might not reach their full potential. Besides both these models are more than a decade old.

[GTO]

@ Anshuman, totally with you! ET seems to have been taken over by the IndiaTV management.

Tata's Official Response:

Tata Motors refutes a report in The Economic Times today on the company’s passenger vehicles business.

Contrary to information in the report,

Tata Motors does not have any plans of ‘de-emphasising’ the Tata Indica. Besides introducing the second generation Tata Indica Vista, the company has also introduced, for example, more fuel efficient Tata Indica models, like the Tata Indica eV2 which at 25 kmpl offers the highest fuel efficiency among diesel cars in India.

It is Tata Motors’ practice to continuously refresh its portfolio, driven by internal technology development and consumer needs. The company has well-articulated strategies for each of its family, comprising the Tata Nano, the Tata Indica / Indica Vista, the Tata Indigo / Indigo Manza, the Tata Sumo, the Tata Safari and the Tata Aria. They will be visible in the market place as per the company’s plans.

Tata Motors does not have any plan of producing any other car at the Sanand plant. The Sanand plant will continue to produce the Tata Nano, and the Pune plant will continue to produce the other passenger vehicles of the company.

The Tata Nano’s sales are progressively increasing with good response to the Nano 2012, expansion of the distribution network with exclusive dealers and marketing initiatives. As sales increase, the Sanand plant will reach comprehensive capacity utilisation.

Tata Motors also denies any plans for a common platform for Tata and Jaguar Land Rover vehicles.

[WindRide]

Indica, despite eV2, is past its sell-by date. Vista will be "pushed" to the fore-front sometime or other.
Indigo Marina is also on the chopping block, it seems.
http://tatamotorsnews.com/2012/04/ta...go-marina.html

Originally Posted by amrisharm

Just the other day i read an article in autocar india that stated that TaTa is developing an extended wheelbase Indica hatch to cater to the taxi segment and chauffeur driven Indicas.

As per this article, the loooonng indica will be CR4-based.

Cabbie special Tata Indica XL CR4 scooped

[rajeev k]

ET should stop forthwith their so called scoops about the Indian automobile scene as they are erring too often than not. Wonder who mans their automobile reporting portfolio.

[Ashley2]

But for Indica, I wish Spacio can be withdrawn.
Spacio was the outcome of leveraging Tata's truck making experience.
Removing and refitting engine in a new chassis/body, a new product is born.
This was a part of that strategy only.

[torquecurve]

Instead of 'removing' the Indica/Indigo badge (at a time when they are bringing in impressive numbers), Tata might move to split the portfolio.

The Indica CR4 (and the stretch Indica) will be pushed for the Taxi market, whereas the Vista TDi might be phased out pushing the cost upwards for the Vista range, thus making it a more 'private' player.

Same would happen with the Indigo/CS/ Manza range.

This will also allow the product line to settle down better and have a clear differential in terms of price and portfolio.

As they mentioned the Nano is now getting settled into the market. As the market comfort increases with this model we will surely see more stabilization in the lower end of the market.

The Spacio is past its sell by date as the Sumo Gold comes with better features at almost the same price. The response to the Gold is evident from the market response it is receiving, the numbers are increasing.

The Grande can be (and should be) getting an update (a new face?) and repositioned against the Xylo/Innova/Tavera.

The new Old Safari/ Safari Storme will take on the Scorpio. While the Aria (with a few price corrections) should take on the XUV.

There is also the Venture which can do well in the family mover market (if it is pushed properly).

Overall, they have a nice portfolio, I think what they are lacking is improvement in market 'IMAGE' which for the new indian is important.

[Sanjunair5]

Tata should do something about preserving the brand equity of its models. Except Safari, they have been pushing all their brands down market. So from being a thing of national prestige, Indica has become a taxi car brand. Similarly Sumo which was a top selling MUV lost its sheen through indiscrimate variants. So much so that Grande had to drop Sumo from its name! This in the long term is a dangerous ploy as they will have to work on establishing the brand everytime a new model is launched.
Typically models go upmarket (and grow in size) with every new release. Case in point the CRV, Corolla, Civic, Accord and so many more. Tata's strategy may pay in the short run, but may prove costly in the long run.

[shortbread]

Whats the next 'scoop' from the Economic Times hallucination camp:

'HM to phase out the Ambassador'.

I think the times group should stick to what they know best i.e. page 3 gossip

[kaks15]

guys before bashing out ET or drawing out any conclusion about TATA i will say we look at the background first
1) Times group and Tata group standoff since 2009 (information asymmetry)
2) Reporters have their sources just like us and sometimes it turns out a false report. It has always been a long standing debate regarding whether or not the reporters should be mandated to reveal their sources (ultimately a probability of a report being wrong remains)
3) Tata motors have always been clear and straightforward about stating their plans if they are clear on it and find its the right time so ET s scoop or any other scoop turn out to be a waste of time and space in the newspaper
4) I personally don't see Indica/Safari/Sumo/Indigo brands going anywhere till the time someone in my lineage becomes rich enough to own a veyron !

Peace \m/