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Old 5th March 2013, 16:05   #76
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Default Re: Tata Motors to slash Indica, Indigo prices as sales plunge

I presume this cut is only for Indica, Manza and Indigo ? Not for Vista ?

Also looking at the sales of their SUV portfolio, I wonder why they decided to INCREASE prices there ? Especially when the Sumo and Safari or maybe even Storme are cash cows ( what with the platform being partly or wholly written down over the years ). Neither do these SUVs dominate the segments they operate in.

IMO , this increase will only move more sales to competition like M&M
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Old 5th March 2013, 16:13   #77
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Thumbs down Re: Tata Motors to slash Indica, Indigo prices as sales plunge

Improving the after sales, brand image, revamping the models ,etc - all of these things stand true. This is a desperate measure. Going by the Tata's way of functioning we can only expect a nano diesel or re-re-re-freshed Indica/Indigo.
The problem lies in the product catalogue. The after sales service does not even come into picture at this point:

Suppose I have some internet know how and I need a new car.
I go to any website-C**W**e, etc. I enter budget <6 lacs and search.
And, then:

Indica v2
Indica ev2
Indica v2 Xeta
Indica Vista
Indigo eCs
Manza


I got confused, no idea about how others buy a TATA car. I would just do a TATA bye bye and shoot off to someone with a simpler line up.
At the end of the day, customers need simplicity.

Last edited by Technocrat : 8th March 2013 at 01:32. Reason: Please note that even indirect swearing or usage of bad words is not allowed, thanks
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Old 5th March 2013, 16:22   #78
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Default Re: Tata Motors to slash Indica, Indigo prices as sales plunge

Quote:
Originally Posted by narayan View Post
I presume this cut is only for Indica, Manza and Indigo ? Not for Vista ?

Also looking at the sales of their SUV portfolio, I wonder why they decided to INCREASE prices there ? Especially when the Sumo and Safari or maybe even Storme are cash cows ( what with the platform being partly or wholly written down over the years ). Neither do these SUVs dominate the segments they operate in.

IMO , this increase will only move more sales to competition like M&M
The discounts are only on Indica, and Manza products. There is marginal or no price increase/decrease in Vista and Indigo portfolios.

The price increase in UVs is due to Excise duty changes which came into effect recently and will feature for all manufacturers. Hence, Mahindra too is going to announce upward revision in its portfolio.

Personally, Manza was a little too expensive for its 'perceived' class [DZire, Sunny]. Indica on the other hand, clashed head on with Vista and had to re-position to target bigger audience.
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Old 5th March 2013, 17:44   #79
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Originally Posted by akhilesh51 View Post
Personally, Manza was a little too expensive for its 'perceived' class [DZire, Sunny].
I agree. Using the same logic I thought Safari/Storme is perceived a bit expensive compared to the class...
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Old 5th March 2013, 19:44   #80
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Default Re: Tata Motors to slash Indica, Indigo prices as sales plunge

Since I don't own any shares of TATA motors, I would surely like any such move which give direct benefit to customers like me.

Also TML is not first or last company to swallow bitter pill.

But If TML is really interested in "providing more value" to customers, this is not the best way.

IMHO, for a customer like me, batter value addition is to get "real" features without paying for other un-necessary/unwanted features.

Storme LX 4x4, Manza Lx with ABS, Old safari (Dicor) Lx with ABS/4X4,Old Safari (Dicor) with Grande's engine (120 ps) and accordingly (less) priced,can be just some random examples of such steps.

Also It could have been better If price cut was proactive/preventive instead of reactive.
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Old 6th March 2013, 08:29   #81
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Default Re: Tata Motors to slash Indica, Indigo prices as sales plunge

http://www.bloomberg.com/news/2013-0...ate-india.html

"The plan to repurchase cars shows the owner of Jaguar and Land Rover is “desperate” as it has lost market share in Asia’s third-largest car market to Toyota Motor Corp. (7203) and Mahindra & Mahindra Ltd. (MM), according to Deepesh Rathore, the India managing director of IHS Automotive. Passenger vehicle sales at the company plunged 70 percent last month to the lowest in a decade. "
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Old 6th March 2013, 12:35   #82
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Default Re: Tata Motors to slash Indica, Indigo prices as sales plunge

Tata Manza prices have been slashed by Rs 50,000. Now Manza quadrajet starts from Rs 5.99 lacs. I don't know if the price cut is valid for Vista Diesel too.Now Tata is offering a buy back option wherein they will buy back Manza for 60% of the price after 3 years.

For Vista D90 (as well as vista 75)they are marketing a value care gold service plan with two slabs: Rs 6600 for 20,000 kms for 2 years and Rs 9900 for 30,000 kms for 3 year option. It includes all serivce,breakdown parts like steering, clutch, suspension,vipers, belts,scheduled maintenance including consumable,oils ,lubes etc

Nice effort, i must say. Let's see how public responds.

I think time is right for them to launch a 75 bhp Manza CS as the excise cut savings will enable them to launch it at a very competitive price(I reckon starting from Rs 5.3 lac), the only problem will be the pricing of vista will overlap with Manza CS unless they cut Vista price too.


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Old 7th March 2013, 08:51   #83
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Default Tata Motors to slash Indica, Indigo prices as sales plunge

Guys,

Acting fast on the falling sales charts, Tata now offers a buyback of cars sold within the next 2 months at a minimum guaranteed value of 60% of the purchase price.

Its a masterstroke in my opinion. Now when people are keeping cars for a shorter duration, having a confirmed resale value will draw morw people away from similar cars. Usually Tata cars lose about 50-60 % of their value in three years. This almost comes up as a 20% discount on the car.

Combined with the 8% price cut on the Manza, Tata should be able to scale up the charts soon.

Source: Livemint http://www.livemint.com/Industry/hLo...s-plummet.html

Quote:
Tata Motors Ltd, India’s biggest automaker, has a new strategy to revive car sales from a decade low: the company is promising to buy back your Manza sedan.
The Mumbai-based carmaker said it will guarantee customers 60% of the purchase price after three years on cars they buy in the next two months, according to an e-mail response from the company.
Tata Motors, led by chairman Cyrus Mistry, also cut prices for some of its cars this week by as much as Rs 50,000 ($912). The Manza model will be about 8% cheaper.

“The plan to repurchase cars shows the owner of Jaguar and Land Rover is desperate as it has lost share in Asia’s third largest car market to Toyota Motor Corp. and Mahindra & Mahindra Ltd.”, according to Deepesh Rathore, the India managing director of IHS Automotive. Passenger vehicle sales at the company plunged 70% last month to the lowest in a decade.
Mods please merge this thread, if required.

Cheers,
Tapish
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Old 7th March 2013, 09:02   #84
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Default Re: Tata guarantees residual value, offers 60% buyback after 3 years

Sounds like a good deal to get clients, especially people who are looking to change car every couple of years. Great buy back and the car is under warranty the whole time.

Whether this will actually improve sales long term depends on car quality and A$$, but it is a start I guess
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Old 7th March 2013, 09:13   #85
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Default Re: Tata guarantees residual value, offers 60% buyback after 3 years

It also indicates a huge backlog of cars that is choking up the supply chain and creating work capital problems right up to the dealer.

However, this is one sector (and only ) where the Tata brand has lost my trust (am an old ex-Tata hat) - esp after the infamous Tata Sumo case which got dragged till SC and they behaved like bad losers after.

Lost money can always be recovered; lost trust, almost never, even with freebies.
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Old 7th March 2013, 09:54   #86
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Default Re: Tata guarantees residual value, offers 60% buyback after 3 years

As per the ET, this offer is only on the Manza.

http://economictimes.indiatimes.com/...w/18833979.cms

In the same article they have mentioned the idea of exploring purchase of a Nano using credit cards.
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Old 7th March 2013, 10:07   #87
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Default Re: Tata guarantees residual value, offers 60% buyback after 3 years

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Originally Posted by diffsoft View Post
However, this is one sector (and only ) where the Tata brand has lost my trust (am an old ex-Tata hat) - esp after the infamous Tata Sumo case which got dragged till SC and they behaved like bad losers after.
What was this case? I ve never heard of it.
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Old 7th March 2013, 10:09   #88
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Default Re: Tata guarantees residual value, offers 60% buyback after 3 years

It is definately a good Idea after 3 years most TATA vehicles are in the range of 40-50% of their original price and this get the customer better overall value and in addition opens up the opportunity for TATA to sell the customer another car after 3 years, as the customer will be getting in touch with them and will have 60% value (of current car) cash in hand.
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Old 7th March 2013, 10:12   #89
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Default Re: Tata guarantees residual value, offers 60% buyback after 3 years

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What was this case? I ve never heard of it.
Here's the link - http://www.team-bhp.com/forum/indian...g-40-a-48.html (Protest against Tata Motors.EDIT Supreme Court Orders Tata to repair Sumo (pg.40))

Cheers,
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Old 7th March 2013, 10:15   #90
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Default Re: Tata Motors to slash Indica, Indigo prices as sales plunge

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Originally Posted by rock75 View Post
For Vista D90 (as well as vista 75)they are marketing a value care gold service plan with two slabs: Rs 6600 for 20,000 kms for 2 years and Rs 9900 for 30,000 kms for 3 year option. It includes all serivce,breakdown parts like steering, clutch, suspension,vipers, belts,scheduled maintenance including consumable,oils ,lubes etc
Estimating 10k km running per year for a diesel car just shows the confidence level that Tata has in their products at a time when the entire market is suspicious about its reliability. They are digging their own grave by coming up with plans like this which proves that the perception in the market is right. Its time they stop playing safe and change these plans to cover 20000 km per year running at a bare minimum.

They wouldn't have had to give a 50k discount on Manza if they had given something like a 5 year/100000 km service plan at nominal cost and earned back the trust of the customers when things started looking bad.
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