In India, the demand for Utility Vehicles (UVs) is going up day by day. It is one of the few world markets where SUVs, MUVs and MPVs continue to increase, as opposed to automotive markets in other parts of the world. To assess this growing demand, Tata Motors wishes to get back to doing what it does best- creating new UVs.
Having recently launched the Tata Safari Storme at Rs. 9.95 lakhs, one can say that Tata Motors is definitely getting ready to face tough competition in the SUV segment. Similarly, there could be plans for other UV segments as well. Reportedly, with respect to future plans, a top Tata Motors official said, “I can’t disclose anything for future, but you can be sure that we are working on all sorts of UVs in all segments and compact SUV (sports utility vehicle) is playing a vital role.”
Other UVs such as the Renault Duster, Maruti Ertiga and Mahindra XUV 500 are already doing well in their segments. Despite having vehicles in the SUV and MUV category, Tata Motors still has not been able to sell in substantial numbers. In the passenger vehicles category, Tata Motors posted a decline of 8 per cent from April-November 2012 in sales, as compared to Maruti Suzuki India Limited (MSIL) and Hyundai Motors India Limited, which posted increases.
With respect to the new products, Karl-Heinz Servos, Project Director – Joint Projects, engineering research centre at Tata Motors said, “We have been working on a new range of products for at least a year, since I have joined here. We are intensifying the process. We are looking to have a car or product where people can get into from two wheels (two-wheeler or a small car) right into a UV. When you have a two-wheeler or a small car, you aspire for better. What we have to work on are affordable UVs. Whether they will be small is a question, but more small is more affordable.”
Just as M&M and Renault have come out with a compact SUV, Tata Motors is also mulling over designing a new compact SUV for India. This segment would see intense competition in the next two years, whereby Ford India will launch its Ecosport and MSIL may also come out with XA-Alpha, the concept that was showcased at the 2012 Delhi Auto Expo. One can already see the heavy demand for such vehicles, as 15,000 Dusters were booked within the first two months.
In September 2012, sales of Tata Motors’ passenger vehicles stood at 21,652 units, down 18% year on year. For the Sumo, Safari, Aria and Venture vehicles (UV), sales for September 2012 were at 4,519 units, down 15% year on year. However, the cumulative sales for the current fiscal were up 11% at 25,053 units. Clearly, Tata Motors needs to release newer vehicles, which have to stand out in terms of design and performance, so that sales can be buoyed. Special attractive offers can only boost sales for a limited period, but it is the overall performance of a vehicle that can sustain sales on a long-term basis.
