Will Tata Motors be able to regain its market share?

chennai-indian · 26th July 2012, 08:57

Tata has been steadily improving quality of cars like Vista and Manza. Yes, there are still niggles but it is being addressed. Biggest issue is not with the cars per se. It is with the dealership and pathetic service levels.

If Tata can address and improve dealership experience and service quality, I see no reason why Tata cannot regain market share.

Another thing - A car maker should create a buzz around it's products in the market. M&M does that but Tata has failed miserably in that.

arvindmanju · 26th July 2012, 10:04

Lots been discussed about their products A.S.S etc, hence I don't want to repeat them.
My point is when they were able create a big fan followers to Safari with their stunning ads( even now people watch their safari ads) why couldn't they create the same aura for Nano? It's a most practical car for city use but not much of buzz. Again a poor sales strategy for Aria, the car could do all the things XUV does except sales.
Storm- has a big discussion among the group as to why, when, reliable source and other speculations.

I feel it's complete disaster in Tata marketing/sales department which takes a bigger share for their fall, followed by production & R&D.
They have good product line but still failing.

indian21r · 26th July 2012, 10:24

Image When Toyota with its reputation for reliability failed to push a spartan product like Liva (interiors look damn cheap), it is clear indication that the market has matured. People are not buying a car just for moving from one place to another. It is a status symbol at all levels. Each segment has n number of choices and Tata's seem to be hanging at the fag end of the spectrum everywhere.

Quality & ReliabilityTata cars still seem to have a lot of niggles, take the case of Safari of throttle king. In a product which is more than decade old, you cannot have issues like windows not rolling properly. Simply not acceptable. We have office Aria's which are classic case of failed QC. For one issue, Tata engineers who actually designed the product came with their design drawings but could no trace the problem even after 3 days of R&D on it.

We had an Indigo first generation 2004-2007. It was extremely reliable except for a few rattles. How come they have gone down hill from there?? Did they close the QC department or what.

You do not want to buy a car and be stranded in no mans land which Tata's have gained a reputation for. Market has become more aware about quality and reliability. And these are the things which are easy to loose with 1 mistake but take really long time to regain.

mayankjha1806 · 26th July 2012, 10:37

It is tough times for Tata, but the way i see it is that they are making the right investments to get ready for the future. In short term the benefits may not show up.

Take for example the strong focus on QC starting from Aria, and the current Manza, and the Storme. These may mean in the short term because of QC problem launches may be delayed, but once they get a hang of it and are apt at getting the same quality with lesser investment of time the new product launches will be faster and with higher quality.

So in short yes they can regain market share in the future, if they are investing in the right areas now.

wilful · 26th July 2012, 11:37

Quote:

Originally Posted by vibbs

All of Tata's designs apart from sumo and safari seem to start and end with the Indica. Vista, Indigo, Manza and even Aria all look like an overgrown Indica. While carrying family traits is fine, I guess Tata has stretched the design language too long. They need a break from that.

Poor fit and finish, indifferent quality, tardy service and so on. Amen to that!

I would agree wholeheartedly with the above viewpoint on design. Their vehicles fail to excite in terms of design - the models urgently need a makeover. (Assuming they can get their act right on quality, service etc) If they can come out with some explosive looker (like Mahindra did with XUV) I think it would give them an impetus.

diesel_head · 26th July 2012, 11:40

If there's a TM employee going through this thread, would love to hear from him.
There are a lot of opinions floating around but I'm certain TM has shortlisted a few options.

.anshuman · 26th July 2012, 12:33

Quote:

Originally Posted by reignofchaos

When you are buying a car, it has to be well built I do not want to run to the service center the very next day after buying it. Unfortunately Tata Motors thinks that first lot customers are their guinea pigs for R&D. This attitude has to stop and products should work as well as say a Toyota or a Honda once it leaves the factory. This can only be done with better quality management and emphasis on quality rather than bargain basement price.

Quality control or lack of it is the biggest hurdle affecting Tata Motors. I am yet to see a Tata car with ZERO defects or maybe a car with no warranty claims.

I own a Fiat Punto, it goes for maintenance at the Tata service centers, it is a painful experience but i thank Fiat for manufacturing a car which only needs to be sent to service center for scheduled services and preventive maintenance. Most Vista owners are not as lucky, including a very close friend, despite the same borrowed Multijet engine.

FlyinLow · 26th July 2012, 13:26

I also own a Nano and I have the right to complain on the built quality of Tata cars. Tata cars look fit and fine on the day of the delivery but the satisfaction of owning such a car dies down pretty rapidly when you face the service centres. Pathetic state of customer care. The quality of products used in the interior is nothing worth talking about. In a short span of time, the potholes can be felt through your spine, the AC starts acting wierd. When you feel like getting rid of the vehicle one can't even find a worthy price. Personally I don't like any of the vista, indica, indigo, manza, etc. But I still have a good spot for the Safari, I don't know why.

Having said that, then there's the extreme end, the mercedes and now land rover and jaguar. Hope they take good care of those customers. I wonder if it balances out the overall effect.

And the share Market has also bottomed out for Tata motors.

invidious · 26th July 2012, 13:37

If Tata wants to bounce back, it needs to do 2 things.

1. It needs to extend the warranty of its product more that any other manufacturer provides. Something like 150,000 kms / 7 years Engine and Power Terrain warranty and 4 year complete cover for all parts.

2. Buyback program. Tata needs to buy back its car at a premium compared to the street 2nd hand market rate. In fact it needs to guarantee at the onset that 3 years down the line it will buy back "x" model at "y" cost.

This will assuage 2 fears which plague Indian consumers when they buy a Tata car -

a. Quality issues

b. Re-sale value

sahakar · 26th July 2012, 14:50

If I were Tata Motors, I would just give up on the Indian passenger car market. There is no way in hell they can regain any market share with much better niggle free cars made by the competition all around. They have Jag / LR and that's where they should focus.

However, if they still want the Indian passenger car market, three things they need to do ASAP

1. Increase warranty to 10 years just like Hyundai did in the USA. This will take care of any and all niggles that customers face for the entire practical ownership life of a Tata. Even the manufacturing factory will feel the pressure to increase the QC after that.
2. Sack the current design team and come up with more fresh car designs. Enough of the same old design.
3. Leverage technology of Jag/LR and try to build better quality cars. Although on second thoughts Jag/LR are never known for their reliability :-)

Cheers

rrsteer · 26th July 2012, 17:17

Quote:

Originally Posted by .anshuman

Quality control or lack of it is the biggest hurdle affecting Tata Motors.

I agree!

Quote:

Originally Posted by .anshuman

I am yet to see a Tata car with ZERO defects or maybe a car with no warranty claims.

Thats a sweeping statement. Please be invited to my house for sampling one! It is especially odd that this statement comes from someone who seems to own a Skoda. Because if there really can be a brand with no zero defect vehicles, Skoda has to be that.

DieselDon · 26th July 2012, 17:49

Looks like Tata is doing good in other countries. With the Jaguar profits pouring in, guess the Indian market can be sidelined for a while.

In my view : Focus needs to shift to the Indian market. ('Tata Mgmt': phew.. Why ? Taxis are a done deal. Lets look at it later.)

From Manza Hybrid

If Tata can bring this on the road, they could think of reviving the market share in the non-taxi market.

.anshuman · 26th July 2012, 17:51

Quote:

Originally Posted by rrsteer

Thats a sweeping statement. Please be invited to my house for sampling one! It is especially odd that this statement comes from someone who seems to own a Skoda.

That is not an sweeping statement or generalization because i am not saying there are no Zero defect Tata cars, i am saying i have not seen one.

Quote:

Because if there really can be a brand with no zero defect vehicles, Skoda has to be that.

rrsteer · 26th July 2012, 18:04

Quote:

Originally Posted by .anshuman

Find me a single CRDI/TSI Laura or Yeti on the forum that is a lemon or has quality defects.

Probably, similarly you can dig up my thread on a 126k run (ZERO DEFECT) Safari or search up Pavan's thread. And I can ramble on many more names. Like you have not seen a zero defect Tata, I am yet to see a zero defect, and also let me add - not robbed by a dealer - Skoda.

The point is that this forum sometimes takes a distinct anti Tata tone by making frivolous statements - which just add no value. That should be discouraged. Because the malaise Tata is suffering from, some manufacturers are even more pinned to bed by it, which of course is not highlighted with as much enthusiasm.

wilful · 26th July 2012, 18:24

Quote:

Originally Posted by DieselDon

Looks like Tata is doing good in other countries. With the Jaguar profits pouring in, guess the Indian market can be sidelined for a while.

In my view : Focus needs to shift to the Indian market. ('Tata Mgmt': phew.. Why ? Taxis are a done deal. Lets look at it later.)

From Manza Hybrid

If Tata can bring this on the road, they could think of reviving the market share in the non-taxi market.

Wow!! That sure looks handsome! Just checked that link.

Is this hybrid version selling in India? Interesting specs - AT too.
I agree with you - why can't they phase out the current Manza bring this design? I'm sure it would generate a lot more interest.

26th July 2012, 08:57	#16
chennai-indian BHPian Join Date: Jun 2009 Location: Chennai Posts: 437 Thanked: 641 Times	Re: Will Tata Motors be able to regain its market share? Tata has been steadily improving quality of cars like Vista and Manza. Yes, there are still niggles but it is being addressed. Biggest issue is not with the cars per se. It is with the dealership and pathetic service levels. If Tata can address and improve dealership experience and service quality, I see no reason why Tata cannot regain market share. Another thing - A car maker should create a buzz around it's products in the market. M&M does that but Tata has failed miserably in that. Last edited by chennai-indian : 26th July 2012 at 09:02.
	() Thanks

26th July 2012, 10:04	#17
arvindmanju BHPian Join Date: Jul 2009 Location: KA01 Posts: 472 Thanked: 548 Times	Lots been discussed about their products A.S.S etc, hence I don't want to repeat them. My point is when they were able create a big fan followers to Safari with their stunning ads( even now people watch their safari ads) why couldn't they create the same aura for Nano? It's a most practical car for city use but not much of buzz. Again a poor sales strategy for Aria, the car could do all the things XUV does except sales. Storm- has a big discussion among the group as to why, when, reliable source and other speculations. I feel it's complete disaster in Tata marketing/sales department which takes a bigger share for their fall, followed by production & R&D. They have good product line but still failing. Last edited by arvindmanju : 26th July 2012 at 10:13.
	() Thanks

26th July 2012, 10:24	#18
indian21r BHPian Join Date: Mar 2006 Location: Hyderabad Posts: 964 Thanked: 808 Times	Re: Will Tata Motors be able to regain its market share? Image When Toyota with its reputation for reliability failed to push a spartan product like Liva (interiors look damn cheap), it is clear indication that the market has matured. People are not buying a car just for moving from one place to another. It is a status symbol at all levels. Each segment has n number of choices and Tata's seem to be hanging at the fag end of the spectrum everywhere. Quality & ReliabilityTata cars still seem to have a lot of niggles, take the case of Safari of throttle king. In a product which is more than decade old, you cannot have issues like windows not rolling properly. Simply not acceptable. We have office Aria's which are classic case of failed QC. For one issue, Tata engineers who actually designed the product came with their design drawings but could no trace the problem even after 3 days of R&D on it. We had an Indigo first generation 2004-2007. It was extremely reliable except for a few rattles. How come they have gone down hill from there?? Did they close the QC department or what. You do not want to buy a car and be stranded in no mans land which Tata's have gained a reputation for. Market has become more aware about quality and reliability. And these are the things which are easy to loose with 1 mistake but take really long time to regain.
	() Thanks

26th July 2012, 10:37	#19
mayankjha1806 Senior - BHPian Join Date: Jan 2011 Location: Bangalore Posts: 2,160 Thanked: 978 Times View My Garage	Re: Will Tata Motors be able to regain its market share? It is tough times for Tata, but the way i see it is that they are making the right investments to get ready for the future. In short term the benefits may not show up. Take for example the strong focus on QC starting from Aria, and the current Manza, and the Storme. These may mean in the short term because of QC problem launches may be delayed, but once they get a hang of it and are apt at getting the same quality with lesser investment of time the new product launches will be faster and with higher quality. So in short yes they can regain market share in the future, if they are investing in the right areas now.
	() Thanks

26th July 2012, 11:40	#21
diesel_head BHPian Join Date: Feb 2007 Location: Dubai Posts: 71 Thanked: 74 Times	Re: Will Tata Motors be able to regain its market share? If there's a TM employee going through this thread, would love to hear from him. There are a lot of opinions floating around but I'm certain TM has shortlisted a few options.
	() Thanks

26th July 2012, 13:26	#23
FlyinLow BHPian Join Date: Jun 2012 Location: MUMBAI Posts: 37 Thanked: 10 Times	I also own a Nano and I have the right to complain on the built quality of Tata cars. Tata cars look fit and fine on the day of the delivery but the satisfaction of owning such a car dies down pretty rapidly when you face the service centres. Pathetic state of customer care. The quality of products used in the interior is nothing worth talking about. In a short span of time, the potholes can be felt through your spine, the AC starts acting wierd. When you feel like getting rid of the vehicle one can't even find a worthy price. Personally I don't like any of the vista, indica, indigo, manza, etc. But I still have a good spot for the Safari, I don't know why. Having said that, then there's the extreme end, the mercedes and now land rover and jaguar. Hope they take good care of those customers. I wonder if it balances out the overall effect. And the share Market has also bottomed out for Tata motors.
	(1) Thanks

26th July 2012, 13:37	#24
invidious BHPian Join Date: Sep 2009 Location: Bombay Posts: 845 Thanked: 1,226 Times	Re: Will Tata Motors be able to regain its market share? If Tata wants to bounce back, it needs to do 2 things. 1. It needs to extend the warranty of its product more that any other manufacturer provides. Something like 150,000 kms / 7 years Engine and Power Terrain warranty and 4 year complete cover for all parts. 2. Buyback program. Tata needs to buy back its car at a premium compared to the street 2nd hand market rate. In fact it needs to guarantee at the onset that 3 years down the line it will buy back "x" model at "y" cost. This will assuage 2 fears which plague Indian consumers when they buy a Tata car - a. Quality issues b. Re-sale value
	(1) Thanks

26th July 2012, 14:50	#25
sahakar BHPian Join Date: Sep 2007 Location: LA <--> Bombay Posts: 473 Thanked: 213 Times	Re: Will Tata Motors be able to regain its market share? If I were Tata Motors, I would just give up on the Indian passenger car market. There is no way in hell they can regain any market share with much better niggle free cars made by the competition all around. They have Jag / LR and that's where they should focus. However, if they still want the Indian passenger car market, three things they need to do ASAP 1. Increase warranty to 10 years just like Hyundai did in the USA. This will take care of any and all niggles that customers face for the entire practical ownership life of a Tata. Even the manufacturing factory will feel the pressure to increase the QC after that. 2. Sack the current design team and come up with more fresh car designs. Enough of the same old design. 3. Leverage technology of Jag/LR and try to build better quality cars. Although on second thoughts Jag/LR are never known for their reliability :-) Cheers
	() Thanks

26th July 2012, 17:49	#27
DieselDon BHPian Join Date: Aug 2011 Location: Houston, Texas Posts: 199 Thanked: 135 Times View My Garage	Re: Will Tata Motors be able to regain its market share? Looks like Tata is doing good in other countries. With the Jaguar profits pouring in, guess the Indian market can be sidelined for a while. In my view : Focus needs to shift to the Indian market. ('Tata Mgmt': phew.. Why ? Taxis are a done deal. Lets look at it later.) From Manza Hybrid If Tata can bring this on the road, they could think of reviving the market share in the non-taxi market. Attached Thumbnails Last edited by DieselDon : 26th July 2012 at 17:51.
	(1) Thanks