Industry

‘Tiago may be the game changer for Tata Motors’

06/04/2016 MUMBAI: Guenter Butschek, Chief Executive Officer & Manahing Director, Tata Motors launch the new hatchback Tiago at a press conference held in Mumbai on April 6, 2016. Photo: Paul Noronha   | Photo Credit: PAUL NORONH

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Tata Motors, which forayed into the passenger car segment with its Indica in the late 90s, has been struggling to make a mark in the market .

Tata’s Tiago, the new hatchback car from Tata Motors, could help the company’s turnaround, according to a top official.

“I am convinced that Tiago will be a game changer both for us as well as for the market.

“A single product cannot manage a turnaround but it (Tiago) is going to be the beginning that leads to a turnaround,” Mr. Guenter Butschek, Chief Executive Officer and Managing Director, Tata Motors, told The Hindu in an interview during the unveiling of the Tiago.

“If Tiago is going to work, we will create an incredible degree of excitement in the whole value chain. All of a sudden, the Tata Motors story will be re-evaluated. I do hope that Tiago will open a new chapter in our history. This is a small and tiny car but it is the machine that might change the world of Tata Motors,” he said.

Process-driven procedure

The vehicle has been designed for the first time through a process driven front-loaded procedure based on customers’ feedback, he said.

Looking for success

Tata Motors, which forayed into the passenger car segment with its Indica in the late 90s, has been struggling to make a mark in the highly competitive passenger car market despite introducing several products including Indigo, Nano, Zest and Bolt over the years.

This time the company is making a bold attempt in making a turnaround with Tiago as the catalyst.

He said the process adopted for the development of Tiago has already contributed significantly to Tata Motors’ transformational journey.

“Tiago is much more than just a product. It is about our transformation in the market and internally,” Mr. Butschek said. He said due to aggressive pricing and superior technology, Tiago would capture a good percentage of the market in the medium hatch segment and will be a ‘pull product’ (it will prompt customers to ‘pull’ the car out of dealerships). The way the vehicle was developed required many cross functional actions and a more forward looking approach.

“The product is good, technologically superior and in a very competitive market, considering the pricing, it is actually a challenger in the medium hatch segment.

“The way we have positioned Tiago, it will lead to new rules of the game in the hatch segment,” he said.

He said Tiago, which has been introduced at a starting ex-showroom price of Rs. 3.2 lakh, is the first car from Tata Motors’s stable to come out of a new process. The four new products that the company has lined up have similar potential, he said.

Highest standards

Tiago, which has been developed as per global standards and with inputs from Jaguar Land Rover (JLR), was put to rigorous endurance test and it successfully covered 50,000 kms in non-stop driving in 18 days.

Meanwhile, JLR has reported a 45 percent growth in the January-March quarter compared to the same period last year following high demand for its recently-introduced models such as the All-New Jaguar XE and Discovery Sport.

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Printable version | Jul 25, 2017 9:45:46 PM | http://www.thehindu.com/business/Industry/tiago-may-be-the-game-changer-for-tata-motors/article8442480.ece