When Tata Motors first introduced Ace, a small truck, it became a smashing hit. The company sold more than 100,000 Aces and nearly 50,000 units of the Magic, its passenger carrier developed using the Ace platform. But now the truck is facing competition as Mahindra & Mahindra has introduced 2 small trucks; the Gio and Maxximo. Other companies are also following the suit.
Due to this, Tata Motors’ market share in the up to 1-tonne division of goods trucks declined from 61% in January-July 2009 to 54% in January-July 2010. As a result, the company has undertaken a host of measures. First, it will introduce a new platform in the 0.5-tonne division known as the Zip, costing between Rs 160,000 and Rs 190,000.
While Mahindra & Mahindra is already present in this sub-category with its Gio, Tata Motors is optimistic that the Iris, will be the first such 4 wheelers in India. The car is currently undergoing testing in Rajasthan and will be introduced by October.
However, for passenger carrier segment, Tata Motors President (commercial vehicles) Ravi Pisharody said, “For passenger carriers, the operator economics is not as clear as it is with an Ace. Unlike better load carrying and ride quality, less wear and tear and turnaround times, for passenger carriers, it boils down to carrying eight to ten people”.
He added, “Most operators are unwilling to shell out a premium of Rs 100,000 or more over the existing options for a four-wheeler in this segment.” So the Iris is expected to have a price tag of Rs 180,000 about the same as three-wheelers.
The Magic will deal with the deluxe segment, and the Iris will try to penetrate small-town and rural India, areas where the three-wheeler passenger share-taxis (not auto-rickshaws) run over 20 to 30 km.
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