What’s Wrong with Tata Motors? An Open Letter To the MD


Joined
Jan 25, 2013
Messages
1,523
Likes
1,531
Location
Hyderabad
why we should consider this as a negative point for TATA we have to remember one thing first if a car is prefered for TAXI Operations means CAR will be truely Econominal to drive, Spacious to seat 5Adults confortably and Low on maintanance.

TATA ZEST is one package comes with good acceptable features in lower end variants for a good price tag so TAXI operators will deffinately consider as a good Opt for them. its i dont agree that TAXI Image drains Brand Value if this true then No one will prefer to buy INNOVA.ETIOS and Dzire they are popular in TAXI Market

I guess that we can see few more zest as a TAXI specially in Hyderabad were TATA Cars like Indica v2 and Vista cars are highly popular with yellow plate
 
Joined
Apr 11, 2011
Messages
3,039
Likes
2,132
Location
()
Joined
Jan 25, 2013
Messages
1,523
Likes
1,531
Location
Hyderabad
There is absolutely nothing wrong in being used in the Taxi segment. It was Tata Motors that made the amusing statement that Zest will not be given to the Taxi segment.

But seeing the dwindling sales of Zest looks like the car is now offered to this segment !

Link to same:
Tata Bolt(s) the door against taxis for new launches | Business Line
Ofcourse TATA made a statement that they wont sell cars to fleep operators but its not in under control option of TATA because dealers deosnt know about what custormer will plan because customer have to register their cars any were
 
Joined
Oct 24, 2014
Messages
1,551
Likes
1,296
Location
Mangalore
@GBR its on the company whether it will give it to fleet operators not the dealers. when a new vehicle is launched the company has to give in writing to the rto the details of the vehicle and what purposes these vehicle will be used. so if the company says we will not be lending it for TAXI purpose then no matter what you cannot register it under yellow board. when honda launched mobilio there were a lot of people who wanted to go for it for taxi purpose but it was not possible later honda gave permission for yellow board vehicles. so definitely it depends only on the company and no dealer has any role in it.
@Vm2011 wats wrong in cashing in on the market at the end of the day TATA is there to do Business and as per the needs it has to change their statement. tomorrow you start a business you will do whatever it takes to keep the ball rolling. also a business man is sucessfull only if he never ceases an opputunity to make some bucks. same is the case with TATA. or Same is the case with any SMART BUSINESSMAN. lets not critisize them for that.
 
Joined
Sep 5, 2011
Messages
943
Likes
999
Location
Hyderabad
There is nothing wrong, please read my comments . It was the manufacturer who did make the statement and retracted when better sense prevailed ( SMART BUSINESS SENSE)!
Or maybe he bought second hand. But this disappointed me. It is sheer value for money and no taxi guy will not want to have one.
 
Joined
Oct 23, 2013
Messages
1,143
Likes
865
Location
Bangalore
To put the taxi issue in order, let us see the example of two vehicles,Tata Indica and Mahindra Logan.Both these vehicles were good.Engineering wise also they were good.When they were introduced they had booking wait list for months,but once the fleet operators started using the cars as Taxi ,customers left these cars. Keep it in mind that these are entry level segments and people who buy the cars are really conscious about the tags. If not,the sales numbers needs to be so big that the customer don't mind it (ie. out 10000 cars 100 are Taxis,like Swift and Dezire).Now why don't these apply for Innova and Scorpio ?The people who afford to buy these cars know the cars are premium and even the taxis in this segment cost money.(The "costly" tag is maintained.) In the indica case since, the dealers are not getting the numbers they had started selling the cars as taxis,which is a downward spiral as this may increase sales in near future, but in long time,the car will lose its resale value(surprisingly,people ask when the buy!) and the market too.

This is not only in India,this is a world wide phenomenon.The vehicles that are taken for fleet operations,leased or bought,are those which have less resale value and which gets a discount on sale.

I am not saying Zest is a bad car, but making it a Taxi so early is not a good idea. There is a subsidy for taxi as well as only tax needs to be paid yearly.So while buying a new car, Taxi is lucrative .So there is a chance, that those sales managers and executives in tata dealerships are getting in touch with the same old taxi operators and selling Zest the same way.

There is also a chance that those are vehicles of 2014,which is not sold,now going as taxi out of desperation from dealership.
 
Last edited:
Joined
Jan 25, 2013
Messages
1,523
Likes
1,531
Location
Hyderabad
To put the taxi issue in order, let us see the example of two vehicles,Tata Indica and Mahindra Logan.Both these vehicles were good.Engineering wise also they were good.When they were introduced they had booking wait list for months,but once the fleet operators started using the cars as Taxi ,customers left these cars. Keep it in mind that these are entry level segments and people who buy the cars are really conscious about the tags. If not,the sales numbers needs to be so big that the customer don't mind it (ie. out 10000 cars 100 are Taxis,like Swift and Dezire).Now why don't these apply for Innova and Scorpio ?The people who afford to buy these cars know the cars are premium and even the taxis in this segment cost money.(The "costly" tag is maintained.) In the indica case since, the dealers are not getting the numbers they had started selling the cars as taxis,which is a downward spiral as this may increase sales in near future, but in long time,the car will lose its resale value(surprisingly,people ask when the buy!) and the market too.

This is not only in India,this is a world wide phenomenon.The vehicles that are taken for fleet operations,leased or bought,are those which have less resale value and which gets a discount on sale.

I am not saying Zest is a bad car, but making it a Taxi so early is not a good idea. There is a subsidy for taxi as well as only tax needs to be paid yearly.So while buying a new car, Taxi is lucrative .So there is a chance, that those sales managers and executives in tata dealerships are getting in touch with the same old taxi operators and selling Zest the same way.

There is also a chance that those are vehicles of 2014,which is not sold,now going as taxi out of desperation from dealership.
i got agree that only taxi image drained sales chatt of above mentioned cars.

When we talk about TATA Indica enjoyed segment best sales for one decade from 1999 to 2008 specially in the period of 2006 to 2007 they almost sold around 1.50Lack units after 2008 Indica started loosing its market share because of new arivals in this segment Cars like Swift DDIS and TATA VISTA so people shifted to modern cars and better drivable cars

we to remember that TATA Indica Turbo sold pretty good numbers in premium hatchback space still 2008

The same story behind Mahinda Renault Logon sales when Logan launched in 2007 at that time we dont have more options in mid size sedan segment so logan instantly recognized in market but with in the period New compact cars like TATA Indigo CS and MARUTI SUZUKI Dzire entered so thats effected Logan them Mahindra taken Bulk orders from fleet operators specially for Hyderabad Internationation Airport
 
Joined
Oct 24, 2014
Messages
1,551
Likes
1,296
Location
Mangalore
Thats nothing to do with the build quality of the car its mere perception of people. i think instead of concentrating on sedans and hatch TATA should concentrate on what they are actually known for, the SUV Segment. This is one segment TATA was good at however past few years they have served this spot to M&M.
 
Joined
Sep 5, 2011
Messages
943
Likes
999
Location
Hyderabad
Nothing to be surprised . We expected both cars in total to settle between 5000- 7500 at the most. That's because of the damage Tata motors has done with self inflicting wounds. But they settled a little less. Future commitments in the form of new products and a brand new portfolios hold bring the moral of the company up in the future. Until then these products should be able to hold the candle.
 
Joined
Oct 23, 2013
Messages
1,143
Likes
865
Location
Bangalore
Nothing to be surprised . We expected both cars in total to settle between 5000- 7500 at the most. That's because of the damage Tata motors has done with self inflicting wounds. But they settled a little less. Future commitments in the form of new products and a brand new portfolios hold bring the moral of the company up in the future. Until then these products should be able to hold the candle.
I totally agree.The way maruti is fooling people with alto,k10 and celerio,its the out look of the people who need to change. Just out of curiosity,how about the cost of the vehicle being reduced? Since Bolt is there in the market putting the Vista a little lower will help the sales? Don't know what the pathetic dealerships will do. They will again sell it to taxi guys,[surprise] rather than fighting it out with the opponents.

A new engine is on the design table is what TATA told while introducing this revotron engine in the market. Hope and wait !
 
Joined
Nov 24, 2013
Messages
941
Likes
925
Location
Pune
Whats wrong with Tata Motors ? A lot of common sense actually. The other day I went to Concorde motors in Pune. And what do I see right at the entrance to the dealership ? A totally banged up Storme, partly covered. Right at the entrance. When I enquired, the sales person casually said, it belongs to a customer and has been lying there for quite some time. I suggested, atleast you can keep it behind the store in the service area, out of sight of potential customers ?? He looked at me, shocked first, and then a little embarassed.
If this is how you greet customers, no wonder the only people turning up at your dealerships are ones who really dont care about finessse and sophisitication, ie. the taxicab operators.
 

Top Bottom