Tata Motors: Serving an 'Ace'

Details

Case Code : CLMM058
Publication date : 2009
Subject : Marketing Management
Industry : FMCG
Length : 04 Pages
Price : Rs. 100

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Key words:

Tata Motors, Ace, Bajaj Auto Limited, Light Commercial Vehicle, two wheeler, three wheeler, four wheeler, manufacture, new product development, small commercial vehicle, Hyundai Motor India, Piaggio Vehicles Pvt. Ltd., Mahindra & Mahindra , India automobile sector, industry, market research study

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

This case is about the development of Tata Ace, a mini truck introduced by Tata Motors Ltd. (Tata Motors) in 2005. Tata Ace created a completely new market segment and became a huge success in the Indian market. The case also discusses the nature of the competition in the light commercial vehicle market in India and the reasons for the success of Tata Ace.

Introduction On August 29, 2006, Bajaj Auto Limited (Bajaj Auto), a leading manufacturer of two wheelers and three wheelers in India, announced that it was planning to set up a new manufacturing facility near Pune, Maharashtra, to manufacture both three wheeler and four wheeler Light Commercial Vehicles (LCVs). Rahul Bajaj, Chairman, Bajaj Auto, said, "Three-wheelers and light four-wheelers occupy an important and growing segment of the automobile industry in India and in many foreign markets." The total investment envisaged for the project was Rs 20 billion. The plant was expected to be operational by 2009 and have an annual capacity of 0.5 million units.

Analysts opined that the four wheeler LCV that Bajaj Auto proposed to roll out would be in direct competition to 'Tata Ace' (Ace), a mini truck produced and marketed by Tata Motors Limited (Tata Motors), India's largest automobile company, and part of the Tata Group...

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