Tata Motors is preparing to launch a new small commercial vehicle (SCV) in the next few weeks.
The new vehicle is to be positioned between Ace and Super Ace, Tata’s mini and pick-up trucks respectively.
The strategy is to attract buyers that may include small entrepreneurs, traders and retailers who are looking for slightly higher power and more load capacity than Ace. The product is expected to be launched in a month’s time.
“We are yet to give a brand name, but it will have the name Ace and something. The new small truck will offer high initial torque, and sport a common rail engine. It will also be priced lower than Super Ace and Ashok Leyland Dost,” Ravi Pisharody, Executive Director-Commercial Vehicles, Tata Motors, told this correspondent .
With widened product offerings in the SCV segment, which comprises sub-1 tonne payload mini trucks and above 1-tonne payload pick- ups, Tata hopes to fight the emerging competition strongly as more players are in the fray for LCV.
“This segment will be very strong though it is presently hit as financiers have become ultra cautious in lending. SCV segment will never get saturated as mini-trucks like Ace will be a good form of employment generator for semi-literate or illiterate people to take up some jobs instead of being a just helper or worker. The current scenario is, therefore, a temporary correction as economy has slumped. The segment will get back to growth mode soon,” he added.
Experts are of the view that SCV segment would grow at above industry average driven by the need for last mile connectivity and relatively low penetration in rural markets. Also, the ratio between light and medium and heavy truck segment is still very low in India when compared to developed economies, and, hence, there is huge scope for volume growth in the coming years.
Tata Motors, which changed the face of LCV industry with the launch of its 4-wheeled goods carrying mini truck Ace in 2005, presently commands a market share of about 48 per cent in SCV category, which falls under 3.5 tonne GVW (gross vehicle weight) LCV segment.
