Tata Motors lost bet

  • Sep 22, 2015

Home-grown automobile manufacturer Tata Motors has been constantly struggling to win back the lost ground in the Indian car market. The company's bet on the Zest and the Bolt which are present in the most popular segments of the passenger vehicle market - compact sedan and premium hatchback- has not been able to garner sales volume. Born from Tata Motor's HorizonNext strategy, the Zest was launched in compact sedan segment on August 12, 2014 and the Bolt in premium hatchback segment in January this year.

Also Read: Tata Zest Anniversary Edition launched

Both cars were expected to flip the game for Tata Motors.When unveiled in the 2014 Delhi Auto Expo many research firms like Moody's and Goldman Sachs speculated that the launch of these cars could be a turning point for Tata Motors. However the fate of any product is not just decided by the design, specification and features but sometimes, the brand perception also plays a massive role in its success or failure.

Compact Sedan

Talking about the design and features, both the cars have been rated fairly well. Moreover, these cars carry some of the segment first features such as Multi-Drive and AMT transmission (available only in Zest). But numbers on sales report speak some other language. Tata Motors on average sells 1776 units of Zest as compared to the segment leader Maruti Suzuki DZire which sells an average of 21,224 units.

premium hatchback

Same is the case of Bolt, Tata sold merely 722 units in the month of August and we don't even compare with market leader Maruti Suzuki Swift but with not so popular Volkswagen Polo which sold 2803 units in the same month.

Going with the fact that new products generates excitement and attract buyers. But in case of Tata Motors things are quiet upside down old cars like Indica & Vista are generating a decent number of around 2500-3000 units a month while Bolt is facing serious demand crisis. However, the sales of Tata Indica & Vista comes from Tax-hailing apps and fleet agencies as these cars perceived as Taxis.

Tata Bolt

According to industry experts, apart from having a good product the company has to strategically price and position the product to make it a blockbuster. Tata is also working on two new SUVs with JLR but before the launch the company has to work a lot on its brand image.

Also Read: Can JLR help Tata to crack premium SUV segment?



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