Tata Motors To Slash Indica & Indigo Prices

[achinjain91]

Tata Motors is set to slash prices of its Indica hatchback and Indigo sedan as its battles falling sales in the domestic market.


The prices could be reduced by as much as Rs 50,000 and the minimum price cut on passenger cars (excluding Nano) will be around Rs 29,000, CNBC-TV18 reported on Saturday quoting a company official.

The price cut move is to give value proposition to customers on Tata products and make Tata vehicles more attractive, the official said.

However, the fact is that the company's passenger car sales are on a slide, faster than the overall industry slowdown.

For instance, Tata Motors' sales in February plunged 70 percent year-on-year to just 10,613 units.

While the passenger car prices are set to see a cut, the prices of its utility vehicles will go up with immediate effect.

Tata Motors will hike UV prices by around Rs 50,000 to offset the hike in excise duty announced in the Union Budget. The Finance Minister had announced that the excise duty on SUVs will go up to 30 percent from 27 percent.

Thus, the price of Sumo and Safari will go up by Rs 35,000 and Rs 50,000 respectively, the official said.

Rival and country's top UV maker Mahindra & Mahindra had also announced a price hike across its products, excluding the Quanto, by more than 2 percent following the excise hike.

Tata Motors shares closed at Rs 288.40 on NSE on Friday, up 0.3 percent from previous close.


Source:Tata Motors to slash Indica, Indigo prices as sales plunge - Moneycontrol.com


Good news, tata cars are even more cheaper now.
Now it remains to be seen whether they are talking about old gen indica V2 and eCS or the Vista and Manza too. Tata and their nomenclature.

BTW I feel its all about their IMAGE, they need to change their image of having lethargic service in every nook and corner of this country. I know it has improved in cities, but rural areas are still living with inconsistent service centers.

[visran]

10K sales in feb, what's happening to Tata Indica brothers alone has more than 10 variant's & Tata has 10 models in their line up, and most of the models carried a hefty discount at the dealer's level,despite this Tata barely managed to meet a 5 digit sales number? and now this move will further shrink Tata's bottomline.

[tdcarlover]

The Cut-price Aria did not work-its the initial splash they seem to have missed
The Cut price Indica/ Indigo cars-well will have to be pretty steep to really get car buyers-wish they had done the same when the going was slightly better-now it will seem like a distress sale
However, the absolute rot in sales is extremely puzzling-the Vista, Manza are good products-though overpriced-10K altogether!

What price would you buy the following. I have given my choice for the maximum i would pay for a MIDRANGE model in each type -on the road-not ex showroom
1. Indica Xeta ----------------- 3.Lakhs
2. Indica V2 diesel....................3.5 Lakhs
3. Vista TDI-------------------- 4.5Lakhs
4. Vista Quadrajet---------------5 Lakhs
5. Vista Saffire------------------4 L
6. Manza Q-jet------------------5.5 L
7. Manza Saffire----------------5 L
8. Venture----------------------4.5L
10.Safari Storme---------------- 8L
11. Indigo CS4------------------5L
11.Aria--------------------------9L

[ERTIGA_ZMR]

Aria and Storme in 8L, I believe if Tata will sale these vehicle at your price they have to file bankruptcy in no time.The price mentioned may not even equal to the cost price.

[sukanta]

Mate I would happily buy those even as used.. This never going to happened

[achinjain91]

@tdcarlover
Mate that is a bit too much, those figures OTR?
If that happens then TATA will have to use workers as slaves

[tdcarlover]

.. the point is at what price would I (you) actually buy one of these vehicles?-perhaps the perceived value-above which you would not buy and TML sales will continue nosediving?

[D.J.D.]

whatever you say guys but IMO TML needs immediate change in their design language.At present there is no freshness in their products (except Aria). and i am sure their sales numbers will not go up even after the price cut.

[achinjain91]

TATA has a habit of silently removing features from their variants or increasing prices, this is another reason for failure.
But, there are people who pay 35k extra for a swift vdi instead of vista vx, even though swift lacks ABS etc. or would even pay around 7.8k for a swift Zdi.

Today, the customer wants peace of mind(A$$), and for that he is willing to pay.

@tdcarlover
The prices you expect are too low for OTR, 50k decrease is okay for tata to regain lost ground and also TASS satisfaction has to improve. I think tass quality should have to become best in the country for an image makeover of the brand.

Originally Posted by D.J.D.

whatever you say guys but IMO TML needs immediate change in their design language.At present there is no freshness in their products (except Aria). and i am sure their sales numbers will not go up even after the price cut.

Yeah, few tweaks in the current vista/manza platform will be great. Safari has atleady been updated.
Add some curves to that plain manza boot
Also, I always loved the old Vista's front grille, it was in a net pattern. It looked like a cheetah running towards you, for me that was cheetah inspired(not XUV)

[Gessler]

Hi guys, do you think Tata should discontinue the Nano?

As of December 2012, the Nano was selling just around 2,000 units,
while at same time Mahindra was selling close to 10,000 Boleros.

Tata should bring out the Megapixel.

[S Class]

Maybe LPG/CNG Nano should increase the sales nos.

[visran]

Spoke to concorde motors yesterday, and the sales rep confirmed the above news but he believes that the price cut wont exceed more than 40K.

[Vishwas]

Originally Posted by Gessler

Hi guys, do you think Tata should discontinue the Nano?

As of December 2012, the Nano was selling just around 2,000 units,
while at same time Mahindra was selling close to 10,000 Boleros.

Tata should bring out the Megapixel.

The sad part here is people got to know that there's a diesel nano coming in this year, so their mind won't go the petrol car even if their driving is less than 1k kms/month.

While discountinuing a nano will bear a major impact on the company which is not doing well at all.


How is it possible to decrease 40 to 50k at one shot? I'm not getting it, already the Indica and Indigo costs less than the competition, but further more means is the quality compromised?

[achinjain91]

Originally Posted by Vishwas

While discountinuing a nano will bear a major impact on the company which is not doing we
How is it possible to decrease 40 to 50k at one shot? I'm not getting it, already the Indica and Indigo costs less than the competition, but further more means is the quality compromised?

I don't think so, remember how low the older vista/manza(grey interiors) used to cost?

I think tata has just realized that they haven't reached a level where maruti sits, i.e. to increase prices without losing any customers.

[tdcarlover]

How do people fix the cost of a car-the cost of production + the profit they hope to make
The Profit has to take into account what their customers perceive the value of that product. In the US of A Toyota is perceived for the common man-its also priced at that. (they have smartly made lexus a separate division). In India,its a luxury brand-till the Liva and Etios came-they can price their products higher -public perception, that this is a high value car (and yes highly reliable)
Think of TML-relatively new in the market-makes a name for value for money cars-not terribly reliable and not the best after sales. Now they want to move up the market-
Can they?-Of course-Hyundai did that in India-albeit a few hiccups - after the Santro and Accent the Sonata , Elantra seemed to bomb.. but they finally have got their act together and now have a range of very successful vehicles
TML... will need (i feel) 3-4 yrs to get a decent portfolio together, with the problem that the rest of the market is not going to wait for them
In the mean time,my advice would be to going back to absolute value for money-small profits and large volumes-sometimes maybe intentional loss- How about the base Nano being sold for 1lakh OTR-imagine the effect-not only on the nano,but on the entire "feeling" about TML-similarly if they could have base versions of each model at "unbelievable" value they will get footfalls in their showrooms again and many may choose to buy the mid-range model if they are not too highly priced as compared to the base model