Time has come for the Tata Magna

Steeroid · 3rd August 2005, 10:23

Many of you may be aware of Tata's big car project, which was to be called the Tata Magna. A couple of prototypes were made before Peuguot approached Tata for a possible partnership that apparently didnt work out. Never do business with the French...

We have now seen the beginnings of Tata's large engine range with the Petrol Safari, a 2 ltr 120 bhp unit. This has now been followed up with the DICOR (Common Rail) 3 ltre 135 bhp unit for the new Safari. From the information that is available, they also have a 2.4 litre 115 bhp DICOR unit and a 2.4 litre 135 bhp petrol engine up their sleeves.

Which begs the question - isnt it time for the Magna to be resurrected? Indica production and sales have stabilised enough for the company to start looking at new segments. They have also exhausted the possibilities on the original MINT platform with the Indica, Indigo and the Indigo Marina now on sale, all of which are doing well. It looks like a good time for the company to start looking at the upper end of the market, or else it risks being classified as a low cost manufacturer forever.

I also feel that the new Safari should be part of that premium brand.

So, should Tata go ahead with the Magna ? If yes, should it go with the same brand or should it develop a 'premium' brand a la the Lexus, Infinity and Acura? This latter option should include separate dealers and service facilities for the premium cars, so that the ownership experience is differentiated sufficiently for people to walk in and take a look.

Hence the poll. Please vote and share your comments...

nishant_kingpin · 3rd August 2005, 10:44

Tata's should come with a bang in the premium segment with 1. Magna and 2. Aria.

They should develop them as niche vehicles in the 10 - 12 lakhs range and they should have the value of being at that level.

It will be a great idea to have separate dealerships as well as service locations which should be chosen after some deliberation from the company. Concord could be revived for the arrangement as well.

typeOnegative · 3rd August 2005, 11:02

Tata and a premium car? No way. It is not going to sell.

Tata with a subsidiary/spin off for premium cars, like Honda and Acura, Toyota and Infiniti? Oh yes. I voted for that.

redarrow · 3rd August 2005, 11:07

Quote:

Originally Posted by nishant_kingpin

Tata's should come with a bang in the premium segment with 1. Magna and 2. Aria.

They should develop them as niche vehicles in the 10 - 12 lakhs range and they should have the value of being at that level.

It will be a great idea to have separate dealerships as well as service locations which should be chosen after some deliberation from the company. Concord could be revived for the arrangement as well.

ya i agree with u nishant

man23ish · 3rd August 2005, 11:30

Quote:

Originally Posted by typeOnegative

Tata with a subsidiary/spin off for premium cars, like Honda and Acura, Toyota and Infiniti? Oh yes. I voted for that.

TypeO,

Its Toyota and Lexus, Nissan and Infinity.. Heh Heh..

But hell yeah, TATA should adopt that business model and spinoff a subsidiary for high-value vehicles.. Those vehicles would sell better in the western countries and in the gulf.. I doubt there would be a huge market in India for the same..

Manish.

turbo_lover · 3rd August 2005, 11:35

they certainly should launch a premium brand ..or else it will never attract the higher segment buyers ..

typeOnegative · 3rd August 2005, 11:40

Quote:

Originally Posted by man23ish

TypeO,

Its Toyota and Lexus, Nissan and Infinity.. Heh Heh..

Manish.

My bad. Oops. Dont think before typing :(

normally_crazy · 3rd August 2005, 11:50

I think Tata better work on getting the quality right for the portfolio they have now. Iron out all the glitches like the interior quality , the rubbery shift etc. and yeah they better start working on the auto gear box too . if the premium cars launched by Tata comes with quality they have now its will simply not work...i dont think it would sell...unless they offer accord like space at Indigo prices.

so Tata better get cracking in improving the present portfolio - which would help them when they plan a premium car launch !

Steeroid · 3rd August 2005, 11:54

Quote:

Originally Posted by man23ish

Those vehicles would sell better in the western countries and in the gulf.. I doubt there would be a huge market in India for the same..

Manish.

The Tata name would sell reasonably well abroad - there is no need for a premium brand there since their USP is value, and besides developing a brand abroad works out to be bloody expensive as you need to get the communication spot on - especially with a premium label.

They need a premium brand in India, because this is their biggest market. Thats why buying out a struggling European brand will make sense - they should've bought the Rover name somehow. Forget the rest of it - they could've developed it into a premium brand here and continued with Rover's middle-market positioning outside and they wouldnt have to spend money on developing the brand.

tsk1979 · 3rd August 2005, 12:03

they already do something like that. the Indigo has more front passenger room than the octavia. I am 6'2" yet i can sit comfortably in indigo rear seat with a tall driver in front of me.

serious_maniac · 3rd August 2005, 12:05

Quote:

Originally Posted by typeOnegative

Tata and a premium car? No way. It is not going to sell.

I absolutely agree here...

Quote:

Originally Posted by typeOnegative

Tata with a subsidiary/spin off for premium cars, like Honda and Acura, Toyota and Infiniti? Oh yes. I voted for that.

This is difficult for Tata in India... Any car manufacturer should first stabilise and then looking at managing brands for various segments.. Tata is known for coming up with products which are not up to the quality levels and then gradually improve. At low segments this works fine, but at higher segments they cannot afford it.

They should stabilise first, with a few more models in the small-medium car segment, based on new platform, let customers have confidence that Tata can get things right the first time and then only take the leap in premium segment... Magna at this time will be premature..

better option will be to tie-up with a foreign manufacturer and get technology rights for tried and tested model/platforms... and then do what they are good at - customising to Indian conditions and also some bit of reverse-engineering

~my 2 cents
!maniac

man23ish · 3rd August 2005, 12:28

Quote:

Originally Posted by Steeroid

They need a premium brand in India, because this is their biggest market. Thats why buying out a struggling European brand will make sense - they should've bought the Rover name somehow.

Well, TATA sells in India no doubt about that.. Besides, i feel that brand or no brand, we indians appreciate good products.. But the same is not the case in the cash-rich western countries.. Brand-name sells there.. I agree TATA could have bought Rover or Daewoo's passenger car unit and turned it into a premium car segment.. Daewoo and Rover are already established units, so Tata's would have saved that much amount on brand building..

By the way, congratulations on being the first TBHPian to get the hands on the New Safari.

RX135 · 3rd August 2005, 12:32

I absolutely agree with N_C. Things such as mushy gear shift and pathetic transmission, bad refinement levels are alright with non-premium cars like Indica. If same is offered with premium cars, a) it will spoil the car sales, b) it will spoil the market reputation and people will never go back to Tata.

I think, it would make sense for them to create another brand (with name TATA since it has good brand value) specifically for premium segment. Jumping to premimum segment, without doing their homework, would be a disaster.

ajmat · 3rd August 2005, 13:07

Quote:

Originally Posted by Steeroid

The Tata name would sell reasonably well abroad - there is no need for a premium brand there since their USP is value, .................................................. .....

They need a premium brand in India, because this is their biggest market. Thats why buying out a struggling European brand will make sense - they should've bought the Rover name somehow..........................

good point - Tata is a pretty good brand for emerging markets. Rover in India - look at enfield - more or less dead in in the Uk but alive over here.

re: Magna - it was a boring stodgy looking barge when revealed in 2000. It would sink like a stone if released now unless you do the "Toyota Crown" route and focus on the taxi market

RJK · 3rd August 2005, 13:26

I agree with Type 0....TATA shouldn't sell cars in 10-12lakhs bracket. Instead, like NC said, fix up the glitches with the existing cars.

View Poll Results: Tata in future project
Should Tata resurrect the Magna? YES	16	45.71%
Should Tata resurrect the Magna? NO	5	14.29%
Should Tata launch a premium brand for their higher end cars? YES	24	68.57%
Should Tata launch a premium brand for their higher end cars? NO	5	14.29%
Multiple Choice Poll. Voters: 35. You may not vote on this poll

3rd August 2005, 10:23	#1
Steeroid Senior - BHPian Join Date: Mar 2005 Location: N.A Posts: 7,046 Thanked: 2,751 Times	Time has come for the Tata Magna Many of you may be aware of Tata's big car project, which was to be called the Tata Magna. A couple of prototypes were made before Peuguot approached Tata for a possible partnership that apparently didnt work out. Never do business with the French... We have now seen the beginnings of Tata's large engine range with the Petrol Safari, a 2 ltr 120 bhp unit. This has now been followed up with the DICOR (Common Rail) 3 ltre 135 bhp unit for the new Safari. From the information that is available, they also have a 2.4 litre 115 bhp DICOR unit and a 2.4 litre 135 bhp petrol engine up their sleeves. Which begs the question - isnt it time for the Magna to be resurrected? Indica production and sales have stabilised enough for the company to start looking at new segments. They have also exhausted the possibilities on the original MINT platform with the Indica, Indigo and the Indigo Marina now on sale, all of which are doing well. It looks like a good time for the company to start looking at the upper end of the market, or else it risks being classified as a low cost manufacturer forever. I also feel that the new Safari should be part of that premium brand. So, should Tata go ahead with the Magna ? If yes, should it go with the same brand or should it develop a 'premium' brand a la the Lexus, Infinity and Acura? This latter option should include separate dealers and service facilities for the premium cars, so that the ownership experience is differentiated sufficiently for people to walk in and take a look. Hence the poll. Please vote and share your comments... Last edited by Steeroid : 3rd August 2005 at 10:41.
	() Thanks

3rd August 2005, 10:44	#2
nishant_kingpin BHPian Join Date: Apr 2005 Location: New Delhi Posts: 335 Thanked: 4 Times	Tata's should come with a bang in the premium segment with 1. Magna and 2. Aria. They should develop them as niche vehicles in the 10 - 12 lakhs range and they should have the value of being at that level. It will be a great idea to have separate dealerships as well as service locations which should be chosen after some deliberation from the company. Concord could be revived for the arrangement as well.
	() Thanks

3rd August 2005, 11:02	#3
typeOnegative Senior - BHPian Join Date: Oct 2004 Location: Vikhroli, Mumbai, India Posts: 1,503 Thanked: 27 Times	Tata and a premium car? No way. It is not going to sell. Tata with a subsidiary/spin off for premium cars, like Honda and Acura, Toyota and Infiniti? Oh yes. I voted for that.
	() Thanks

3rd August 2005, 11:35	#6
turbo_lover Senior - BHPian Join Date: Dec 2004 Location: Toronto Posts: 1,377 Thanked: 9 Times	they certainly should launch a premium brand ..or else it will never attract the higher segment buyers ..
	() Thanks

3rd August 2005, 11:50	#8
normally_crazy Senior - BHPian Join Date: Feb 2004 Location: Mumbai Posts: 4,369 Thanked: 528 Times View My Garage	I think Tata better work on getting the quality right for the portfolio they have now. Iron out all the glitches like the interior quality , the rubbery shift etc. and yeah they better start working on the auto gear box too . if the premium cars launched by Tata comes with quality they have now its will simply not work...i dont think it would sell...unless they offer accord like space at Indigo prices. so Tata better get cracking in improving the present portfolio - which would help them when they plan a premium car launch !
	() Thanks

3rd August 2005, 12:03	#10
tsk1979 Team-BHP Support Join Date: Feb 2005 Location: San Jose, CA Posts: 23,717 Thanked: 22,825 Times View My Garage	they already do something like that. the Indigo has more front passenger room than the octavia. I am 6'2" yet i can sit comfortably in indigo rear seat with a tall driver in front of me.
	() Thanks

3rd August 2005, 12:32	#13
RX135 Senior - BHPian Join Date: Dec 2004 Location: pune Posts: 2,106 Thanked: 75 Times	I absolutely agree with N_C. Things such as mushy gear shift and pathetic transmission, bad refinement levels are alright with non-premium cars like Indica. If same is offered with premium cars, a) it will spoil the car sales, b) it will spoil the market reputation and people will never go back to Tata. I think, it would make sense for them to create another brand (with name TATA since it has good brand value) specifically for premium segment. Jumping to premimum segment, without doing their homework, would be a disaster.
	() Thanks

3rd August 2005, 13:26	#15
RJK Senior - BHPian Join Date: Feb 2004 Location: Bombay Posts: 1,140 Thanked: 701 Times	I agree with Type 0....TATA shouldn't sell cars in 10-12lakhs bracket. Instead, like NC said, fix up the glitches with the existing cars.
	() Thanks