Tata Motors - Commercial Vehicles More than half a century of impressive presence and Tata Motors continues to provide

India with top of the line commercial vehicles. Tata Motors is India's largest and among the world's top five medium and heavy commercial manufacturers. We have over 130 models providing a wide variety of commercial transport solutions. A vehicle for every application - you name it we have it! From 2 ton LCVs to 40 ton tractor trailers and buses that can seat 16 people to as many as 67. From Tippers to Special Purpose Vehicles, to 6x4 and 4x4 off road vehicles and Defence vehicles - we cover the entire gamut!

Commercial Vehicles

Xenon Buses

Telcoline

207 DI Ex

Mini Trucks

Mini Vans Medium Vans

Rigid Trucks (L) Tippers (L) Rigid Trucks (M&H) Prima

Tractor Trailers

Tippers (M&H)

207 DI Ex

Designed for urban and rural use, the 207 DI EX allows extra loading and offers better stability and handling to the customer. Built to last, the new 207 DI EX offers higher fuel efficiency, rugged and stronger suspension, larger clutch, better maneuverability and power steering for a better ride. It is packed with high safety and handling features.

Pricing 207 DI RX 570551

Market Share

In the four months ended 31 July, Tata Motors has seen its share of the passenger car market drop to 8.9% from 11.8% at the end of the previous fiscal on 31 March. Its share of the commercial vehicles market dropped to a still-healthy 52.9% from 56.1% in the same period. At its peak, between 2004-05 and 2006-07, Tata Motors market share of the passenger vehicle segment fluctuated between 16% and 17%. Honda sold 11,091 passenger cars last month, growing at 60% year on year. Tatas sales in the segment declined 59.59% to 8,546 units.

Tata Motors lost 3.77% to close at Rs.301.60 apiece while S&P BSE Sensex closed 1.56%, or 290.66 points, lower at 18,307.52. The company posted a 23% decline in the June quarter profit. Net profit declined to Rs.1,726.07 crore from a year ago.

Promotion Here is the latest price list for Tata heavy motor vehicles, with leasing rates from HNB Bank Models listed are Tata LPO 1512 Bus, Tata LPK 1615 Tipper, Tata LPT 1109 Truck, Tata LP 709 Bus, Tata 207 DI Ex Truck and Tata Winger Van

TATA MOTORS vs ASHOK LEYLAND - Comparison Results TATA MOTORS Tata Motors is India's largest CV manufacturer, with an overall domestic market share of 59.4% in FY12 and the second largest producer of passenger vehicles (13.1% in FY12). In 2008, the company acquired two iconic brands, 'Jaguar' and 'Land Rover' from Ford for a total consideration of US$ 2.3 bn and this is likely to transform it into a global player in the passenger vehicles space. It is also credited with the launching of 'Nano', the world's cheapest car till date. Tata Motors is also the first company in the Indian automobile sector to be listed on the New York Stock Exchange. ASHOK LEYLAND Ashok Leyland is the second largest manufacturer of medium and heavy commercial vehicles (M&HCV) in India. It had a 27.0% market share in the domestic M&HCV segment and a marginal presence in the LCV segment (light commercial vehicles). Ashok Leyland is also a key player in the passenger bus segment with close to around 42% of domestic

market share. In FY09, the company had entered into an agreement with Nissan manufacturing company for the manufacture of LCVs, thus taking a big step towards consolidating its presence in the segment. Xenon A powerful pickup truck that is ready to take on any terrain, Tata Xenon offers excellent power and fuel economy. It features a 2.2 litre direct injection common rail engine that delivers peak power of 140 PS and a maximum torque of 320 Nm. The specially designed turbocharger which uses variable turbine technology not only boosts power and torque but also lowers fuel consumption and emission. The Xenon's body boasts of 0.8-1.5mm thick steel sheets for better durability and safety.

Indian auto-maker Tata is offering a four-year/150,000km warranty for its CNG Plus engines fitted to the Xenon pickup truck. The "Gold Warranty" promotion also includes free maintenance, labour and spare parts such as filters, spark plugs and lubricants. In addition to this promotion, Tata is providing a standard three-year or 100,000km warranty to all Xenon CNG Plus pick-up trucks. Maintenance will be free of charge, including labour and spare parts. These will help ease maintenance costs for three years or 100,000 kilometers. The offer is valid until the end of July 2013.

TATA Motors launched TATA Xenon, a lifestyle premium pickup truck for sale in Indian Market on 25th Feb 2009 at an ex show room price of Rs 7.62-8.58 Lakhs in Delhi. Intended

customer segment was customer buying premium pickup trucks, a segment which did not exist. Prior to launch in India Xenon was being sold in South East Asia, Thailand and European countries and had achieved a good 6000 units of sales.. After almost 21months of its launch the marketers could not sell more than 2000 units, in a pickup truck market of about 230000 units per year and an UV/SUV market of roughly 100000 units per year. From above figures we can surely say that Xenon failed to make its place in the Indian Automotive Industry., Marketing customers and strategy of Xenon. Let us start with analyzing marketing strategy implemented by marketers of Xenon

PRODUCT: Xenon is a five seater lifestyle Pickup truck, with better features like, power window, power steering and HVAC system etc. than its competitors like M&M Maxx, Force Ltds Trax, TATA 207DI offered to the customers. Xenon is good on any kind of roads or no roads. Also the vehicle is not able to walk the talk of being a premium pickup as it lacked basic safety features like airbags which is a must, ABS, poor back row seat, while the good thing is it being highly customizable with canopies, railing at the roof, . Xenon has more features than a regular Pickup truck and less features when compared to a UV/SUV. PLACE: Xenon was retailed through 58 passenger car dealers in 39 Indian cities. The problem here was TATA motors put Xenon at a passenger car dealer along with other easily sellable cars like, Indica, Indigo, Safari, Sumo, Linea, Punto and Vista. All these cars had their own market segment, proven track record and required least efforts from the dealer to make a sale, while the same sales person would face difficulty in convincing customers to buy a pickup for their family. In India a normal middle-class family travelling in a pickup truck is not a frequent scene. PRICE: Xenon was launched in two variants in 2 wheel and four wheel drive at price of R 7.62 Laks and Rs 8.58 Lakhs ex showroom Delhi, which was approximately 40% higher than existing pickup trucks in Indian Market. People buying a pickup truck in India generally use it for commercial purposes and are price conscious. Xenons price was at par with SUVs like Mahindra Scorpio and Tata safari. The marketers from TATA were not able to communicate the extra value that Xenon could provide than a Scorpio or a Safari to the prospects effectively. PROMOTION: Marketers and the ad agency did the maximum damage in this category. They faltered in conveying Xenons segment and category to the customers, whether it was just a pickup truck or SUV/UV. This confusion was very much evident fro m the tag line Fits no Label of Xenon. The marketers of TATA themselves were not clear about the segment they wanted to put Xenon in. The adage Have ones finger in many pies is not relevant to market positioning since targeting many people is targeting no one at all. Apart from facing problems in all 4 Ps there were some other factors too. Although every new product which tries to create its own segment need to have points-of-parity (POPs) and

those that lacks PoPs has a recipe for disaster since the customer does not know where to associate the product in his cognitive space. In this case the intended segment is directly borrowed from the US, the biggest market for pickup trucks in the world. Such a segment and the lifestyle does not exist in India, The regular pickup buyers wont buy it for its higher prices and the SUV/UV buyers wouldnt be fascinated because of its lack luster interior aesthetics, safety features and lack of comfort when compared to the present SUVs. We can say that Xenon was launched ahead of its time or atleast in the wrong time of the economic slowdown for the segment it was intended to appeal. In the following part of this report we have found out the opportunity available and marketing strategy that could give Xenon a second Innings. SWOT ANALYSIS Strengths: Looks (Attitude), Size, Engine, All terrain, 4x4 drive, Handling, customisability Weakness: Interior, Safety measures, Wheels, similar parts of other vehicles, Price, Lifestyle Vs Pickup Opportunities: Option to create new segment, First mover advantage, presently only one competition in the form of Mahindra getaway. Threats: Misunderstanding of position of Xenon due to lack of Point of Parities. Lifestyle Pick-ups are new for Indian Consumers NEW MARKETING STRATEGY: Tatas have two choices to make here. Either they can move down the commercial segment they lose the advantage of looks, attitude, need to bring down price, unattractive segment due to large competition Or they can move the product up into the luxury space better interiors, more safety features, Richer feel, association to out-door adventure, more options for accessorization . Mini Truck Ideal for short, narrow roads as well as long highway hauls, the Ace family of mini trucks are an innovative 4-wheeler solution from Tata Motors carrying 600 kg to 1-ton payload.

Price Price Starts : Rs. 8,83,000 Promotion Print Media- The Chota Hathi Advertisement Public Relation- Generated a lot of positive press in the launch Period and also by gaining International Awards. Sales Promotion- An initial discount of Rs. 4000 was given on Ace. Fiancial Services provided to further increase the purchase incentives. Television- 1st LCV Brand used extensive ad on TV Ads Communicationg new opportunities that Ace Present. Market share

Mini Vans Magic is an innovative 4-wheeler from Tata Motors with high power and loading capacity. A small vehicle, it navigates narrow, congested roads easily.

Pricing Rs. 4,56,715 Promotion Market share The domestic commercial vehicles (CV) industry is expected to clock 10-11 per cent growth in the current fiscal. Increased sales of light commercial vehicles (LCV) would be a major contributor to this growth,

Marketing strategies

Winger Tata Winger now comes in a new variant Winger Platinum that takes the luxury of a Maxi bus to next level. Winger platinum, a 7-seater, is redesigned to provide more spacious passenger compartment and individual air-conditioning vents for every seat and features a 2-DIN audio system with 4 speakers with an option housing an LCD screen. The improved interiors boast of increased luxury with better fabrics, coat hooks and two mobile charging ports in the passenger area. Winger Platinum is designed to be used as an office van for executives and guests

Price Tata Winger Price-Rs 7.20- 7.56 Lakh Promotion Here is the latest price list for Tata heavy motor vehicles, with leasing rates from HNB Bank Models listed are Tata LPO 1512 Bus, Tata LPK 1615 Tipper, Tata LPT 1109 Truck, Tata LP 709 Bus, Tata 207 DI Ex Truck and Tata Winger Van

Market Share Tata Motors had introduced Winger in 2007, under the 10 to 13 category. The 6 to 8 seater segment is growing at 26% CAGR, while 10 to 13 seater is growing at 4%. After the market study, we realised that we should have a product in the 6 to 7 seater category as it is one of the fastest growing segments, said Sandeep Kumar, headsales, commercial vehicle business unit. Currently the utility vehicle segment is dominated by players like Toyota Innova, Mahindra Xylo, Bolero, which command almost 60% of the market share. Tata Motors sells 600-700 Wingers on a monthly basis. With the launch of Winger Platinum, it expects to sell 500-600 more vehicles. With Winger, the company is targeting industries like tours and travel, hospitality, BPO staff. The Tata Winger Platinum BS IV would be available for `739,724 (ex showroom Mumbai without octroi).

Marketing Strategies

Tata Motors - Commercial Vehicles More than half a century of impressive presence and Tata Motors continues to provide India with top of the line commercial vehicles. Tata Motors is India's largest and among the world's top five medium and heavy commercial manufacturers. We have over 130 models providing a wide variety of commercial transport solutions. A vehicle for every application - you name it we have it! From 2 ton LCVs to 40 ton tractor trailers and buses that can seat 16 people to as many as 67. From Tippers to Special Purpose Vehicles, to 6x4 and 4x4 off road vehicles and Defence vehicles - we cover the entire gamut!

Commercial Vehicles

Xenon Buses

Telcoline

207 DI Ex

Mini Trucks

Mini Vans Medium Vans

Rigid Trucks (L) Tippers (L) Rigid Trucks (M&H) Prima

Tractor Trailers

Tippers (M&H)