What next for Tata Motors? An MUV? After having been the pioneer in many segments in the Indian car industry, TML had gone into a deep slumber in terms of new products, better after sales service, quality, reliability etc. When I refer to segments, I would say, TML pioneered a "refined" SUV for private use in terms of the Sierra/Safari, large hatch with a diesel heart - Indica, sub 4m compact sedan - Indigo CS, large estate - Tata Estate, Private use Pick up truck - Xenon etc.
After having woken up from the slumber, TML has launched a very capable and desirable product - Zest at a highly attractive price point throwing an open challenge to the existing players in the CS segment as well as to some of the larger hatchbacks. Soon to follow would be the Bolt hatch back, which if priced well going by the Zest experience, should shake up the Swift/G-10 segment ( which would already have been shaken up well by the Zest ! )
I am now wondering, isn't it the right time for TML to be atleast ready with a MUV/LUV on the Zest platform to take on the Ertiga and the Mobilio ?
Lets look at this segment
1) Presently there are 3 players
Ertiga - around 5000 units per month
Enjoy - around 1000 units per month
Mobilio - July figures were 3300 +
Let me put in the Innova figures as well although its from a different segment - there still exists some amount of overlap especially for a person with a budget constraint.
Innova - around 5000 units per month
Hence this is an ~ 15000 units per month segment.
2) This segment has largely eaten into the traditional C segment sedan buyer space as well as create a new niche for those large families/regular highway travelers who benefit from the extra space. Further, it provides the versatility of being able to use a large boot ( that a sedan offers) but also be able to accommodate 2/3 more persons ( that a sedan can't )
3) Post the Mobilio launch, the positioning seems to have slightly changed in this segment
[indent]a) Enjoy - doesn't seem to have gained much acceptance among the private users. I see more of taxis ( especially in the IT corridor )
b) Ertiga - Still the favorite in this segment. Well specced. Good set of engines. Trusted Maruti Brand. Diesel/Petrol/CNG fuel options. Visually different from its siblings and better interior quality
c) Mobilio -new kid on the block. With its pricing at a 60-70k premium to the Ertiga ( based on listed ex show room prices at Delhi ), Honda seems to want to capture the higher end of this segment ( and possibly the Innova base model buyer ) with a "better brand image", relatively more spacious interiors, better engines ( and hence better FE ) and more flexibility in storage options.
4) Lets look at the price range ( all ex showroom Delhi prices as per official websites )
Ertiga - Rs5.8 - 8.49 lakhs
Enjoy - Rs5.7 - 8.1 lakhs
Mobilio - Rs. 6.49 - 10.86 lakhs
On top of this, Ertiga and Enjoy do get additional discounts based on the location/variant/month. Probably Mobilio would have to go down the same path if numbers don't stack up
The Tata Zest has been launched at a price of between Rs. 4.64 - 6.99 lakhs (ex-Delhi).
Assuming a similar competitive pricing strategy, and even a 1 lakh premium over the sedan for the MUV, the Zest LUV/MUV or whatever they may call it can potentially disrupt this segment totally !
The key plus pts for such a vehicle would be ( some of the below pts are purely based on fair assumption because we are speaking of a hypothetical vehicle )
1) Superior styling - Going by what TML has achieved with the Zest and the Bolt, this vehicle should be the best looking in the segment
2) Superior features - Again based on the Zest experience, this car would have far better interiors than the Mobilio and Enjoy for sure and should be either on par or a few notches better than the Ertiga. In terms of features, clearly ahead of all of the above 3
3) Space - No one needs to teach TML on how to create space in their cars ! I will not comment on this pt further
4) Engines - This is where TML would have to do some work. The 1.2 Revotron Petrol won't be sufficient for an MUV. They might have to look for probably a 1.4/1.6 Revotron. On the diesel engine front the VGT QJD engine should do just fine. They can also probably look at the engine from the Tata Venture for base models if required.
If TML faces success with the Zest and Bolt, they surely have a winner in their hands.
I hope TML is already working on such a product. Ideally they should be testing such a product by now, if they expect a 2015 launch.
Last edited by narayan : 25th August 2014 at 12:52.
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