Abstract

This case is about the development of ‘Tata Ace (Ace), a mini truck introduced by Tata Motors Ltd. (Tata Motors), Indias largest automobile company, in 2005. The case describes how Tata Motors developed this vehicle using their in-house expertise. Tata Motors decided to develop Ace, after a market study it conducted found that customers wanted a last mile distribution vehicle that had low maintenance costs, higher driver safety, and better driving comfort. Ace created a completely new market segment and became a huge success in the Indian market. The case also discusses about the nature of competition in the Light Commercial Vehicle and the three-wheeler cargo vehicle segment in India and the impact of the success of Ace on the players operating in these segments.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the aspects related to the new product development process in the Indian Light Commercial Vehicles (LCV) segment of the Indian automobile industry. Understand the impact of Tata Ace on the three wheeler cargo vehicle/ very light commercial veh

Keywords

Tata Motors Limited, Tata Ace, Light Commercial Vehicle (LCV), Indian Automobile Industry, Last Mile Distribution, New Product Development (NPD), Three-Wheeler Cargo Vehicles, Market Research, Segmentation, Targeting and Positioning, Goods Transportation, Product Management, Pricing, First Mover Advantage, Bajaj Auto Limited, Mahindra & Mahindra (M&M)