TATA Pixel - TATA motor's answer to futuristic urban transportation

TATA motor’s newly showcased “PIXEL” looks as cool as its name itself. True to the name the car looks really made for the urban transport. The showcase of the concept came as surprise as Nano was pitted as TATA’s answer for global small car hunt. The car developed in its European Technology Centre looks elegant and seems to possess best engineering.

The car comes with a 1.2ltr, 3 cylinder turbocharged engine and offers just 3 meter turning radius. The engine is claimed to be highly fuel efficient and environment friendly.  True to its claim for urban usage, the concept car offers the scissor styled door. Not sure in the commercial vehicle it would really be viable from commercial cost perspective.  An electric variant also is on cards, however TATA is more keen to start its Indica EV running on European roads.

TATA as a car maker, has a lot of woes for its ambitions in India to capture the market share. However it seems to be making every good move to show its presence in European market. Undoubtedly TATA has made significant investments in its R&D/Engineering for PV segment from setting up an European Tech centre in suburbs of London, having seasoned Automotive professionals in engineering, management including its top management, collaborations. The much hyped Nano, really did not let TATA help realize it in terms of commercial success. TATA does not have enough models to fill the narrow segments on Indian road that is filled with best of the models from global car makers. Its Indica is by far the most popular model that helped TATA stand on its feet in PV segment following a series failed models. Like TATA, all pundits felt Nano would be a run away success due to its perceived low cost that was not there. Even if TATA tried to sell it at its hyped below $2500 price tag, it knows it can’t make money by selling at that price. 

India is a tricky market, as majority of the middle class the whole world is looking at is cost sensitive but has very high aspirations. Adding about 100,000 or so more for a bigger car is not an issue for the people whom Nano was targeted. TATA tried various marketing campaigns to pitch its value for money theme but has not shown in the sales yet.

But all its investments and visions might payoff in Europe in next 4-5 years. As the European market is matured and has one need – Small and electric.









Pictures copy righted by TATA Motors.

Indian Auto Market review for 2009-10

Indian auto market closed with financial year 2009-10 on a healthy note across segments in both domestic as well as export markets. According the industry body SIAM, a healthy 20% growth was seen YoY basis.

The global auto market has seen the worst during the last 2 years with almost flat or negative growth. Indian market was no exception in 2008-09, however the growth started showing by Jan-2010. The CV segment was the worst hit as anticipated and the two wheeler segment did not have much of an impact.

The growth could be attributed to stimulus by Government with significant rebates, attractive interest rates. Also other factor is the introduction of an array of new models on Indian roads that kept the potential new buyers to still go with their buying plans coupled with significant dealer offers, lower interest rates. The bargains were hard to let go.

The two wheeler segment that controls the 76% of the market never saw an impact which indicates the confidence by the global car makers on Indian consumer market that is fairly young as majority of the two wheeler buyers are the youth.

It is interesting to observer the huge difference in the Passenger vehicle market that has about 15.86% to the two wheeler market which is a potential market to upgrade to the smaller car. This indicates the huge potential for the PV market to grow and no wonder India is now housing over 16 passenger vehicle OEMs.

Another interesting fact is that, in PV segment Maruti Suzuki controls over 67% with over 100,000 cars sold every month, of this 80% of the cars are its Estilo brand priced around Rs2,60,000. This endorses the fact why there are about 10 new small cars being waiting to enter Indian market by 2011. Even the premium car markets like Honda, Toyota could not resists the market potential.

Domestic Auto Market share by Segments for 2009-10
Segment	% share
Passenger vehicles	15.86
CV	4.32
Three Wheelers	3.58
Two wheelers	76.23

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Domestic Auto Market share by Segments for 2009-10
Segment	2008-09	2009-10
Passenger vehicles	1,552,703	1,949,776
CV	384,194	531,395
Three Wheelers	349,727	440,368
Two wheelers	7,437,619	9,371,231
Total	9,724,243	12,292,770

Domestic Auto Market share by Segments for 2009-10
Segment	2008-09	2009-10
Passenger vehicles	335,729	446,146
CV	42,625	45,007
Three Wheelers	148,066	173,282
Two wheelers	1,004,174	1,140,184
Total	1,530,594	1,804,619

Courtesy – SIAM

The 2010 AutoExpo at Delhi saw an over whelming response from global OEMs with their plans for Indian market with over 20 new models already on the roads.

Nano, dubbed as the cheapest car ever made from Indian CV leader TATA was launched this year with lots of expectations. However it hit speed breaker even before it started the booking; land row forcing the delay in launches and commencement of production, production issues causing delayed deliveries and poor response in booking. The recent fire incidents are adding to the list of the issues. The input costs have shot up over 4-8% and there is big possibility that the sub $2000 or Rs100,000 that was attached to Nano may not be a reality.

The year saw a lot of significant achievements for Indian OEMs. Maruti Suzuki rolled its millionth car that takes it to the global elite. Maruti Suzuki also overtook Suzuki Motors in terms of sales. The production most popular car on Indian market, Maruti 800 is stopped. Tata Motors became a great acquisition story with many strategic buyouts and alliances, TATA’s Land rover/Jaguar acquisition being the major one. TATA Nano is expected find place US and UK in electric versions by 2011 and The TATA Indica Electric version would be launched in UK and Scandinavia this year. Mahindra the utility vehicle leader will have its flagship Scorpio to be launched in USA as a pickup version.

However growth seen in 2009-10 was against a dull 2008-09 and 2010-11 might not see the same momentum. There is a significant increase in the raw material costs, the interest rates have increased due to the inflation, the union budget took out the excise holiday and EuroIV norm was introduced in 13 cities causing the increase in cost of technology. These costs are already transferred to the customers by increasing the costs of the vehicles. However even a double digit or close to double digit growth also is significant for the global majors that are struggling in western markets.

Electric Nano to run on British and Scandinavian roads

The electric version of the much publicized Nano by TATA motors is expected to hit British and Scandinavian roads in next 3 years.

The electric version was unveiled at Geneva Autoshow 2010 along with displaying Aria, Xenon, Indica EV. TATA had displayed the electric version of Indica in Delhi Autoexpo 2010.

TATA is making serious bid to gain early mover advantage to take the slice of lucrative European green car market where the EU is committed to reduce the emission by 20% in 5 years. TATA is running initiatives through its subsidiary TMETC in UK for all its EV vision. It had acquired 50.3% in Norwegian electric technology company Miljo. The TMETC, TATA motors European technology centre based at Coventry in West Midlands is an effort to bring in the best of talent from European OEM in vehicle technology, engineering and R&D.
TATA motors recently had Carl-Peter Foster, ex-GM Europe Head as group CEO including India.

TATA cars are expected to take Chevy Volt and GM Ampera head-on as the Volt/Ampera have created enough buzz about their launch this year in Europe.

The Indica EV version is expected to be launched by September this year in Norway and by end of this year in UK. The Indica is expected to run 200kms for full charge.

Tata Motors posts 89% revenue growth in Q3

Tata motors, India’s top automaker announced a turnaround growth of Rs400 crore net for 3rd quarter of FY200910 compared to a loss of Rs263 crore the previous year.
The revenues stood at Rs 8980 crore. The easy loans, coupled with an array of new vehicles launched across segments have contributed to the growth. Tata has the worlds supposed to be the cheapest commercial car Nano, New indica hatchback, Manza midsize Sedan, 28 seater Tata Marcopolo bus, CV Prima rolled out to Indian market.

However the growing commodity prices and RBI’s increase of CRR by 75% basis point, hinting at increase in loan rates would be of cause to worry for the next couple of quarters.