Tata Ace is a new commercial vehicle launched by Tata Motors that has achieved initial success. It has doubled its production capacity to 60,000 units. To further increase production capacity efficiently, the group recommends a pilot project in North and East India involving cooperative competition with ancillary companies of other automakers. For new market entry, the group targets the intra-city travel market, and recommends partnerships with local auto shops, banks, microfinance firms and driving schools to strengthen distribution, financing, and job creation. International expansion is not recommended, rather the focus should be on strengthening the brand and launching new variants in India.

1. Presented by Section 3 - Group 4

2. “Best
Commercial
Vehicle”
 Tata Ace New Product by TATA Motors
◦ Achieve Initial Success – Introduction Stage PLC
 Doubled Production Capacity – 60,000 Units
BAU Most Likely Goal

3. Strength Weakness Opportunity Threat
First Mover Advantage – 81.5% parts ACE Launched only Competition with
New Business Line - Outsourced – 120 in 5 States in India Other 4 Wheeler Auto
INDIA’s 1st Mini Truck Vendors (High Rest of India & Companies – Maruti
NEW TECHNOLOGY Dependency on Export Market Omni – Major Threat
External Factors) Remains
Only Vehicle in India with New Market Entry – Potential Existing 3W Foreign competitors –
access to all kind of Other States – Cargo Market – planning to come to
Roads + high turning Requires Local 135.5K Units @ 14% India. Major Threat by
radius Mechanics Training Growth = 154.5K X Japanese & Korean
Cost Rs2.25L / unit = Companies – Daihatsu
Rs 34.75 Bn & Hyundai
Trained Mechanics for Existing Plant @ Pune Target 7% High dependency on
Tata Ace Maintenance & – 100% Utilization Performance external vendors leave
Repair Higher Cost for Sensitive Customers possibility of
Expanding Capacity – Asking for becoming deserters
Premium
Successful “Small is Big Weak Distribution
Campaign” System Vs
Competitors
Bharat Stage III Emission
Standards - License

4.  Increasing Production Capacity Efficiently
 High Dependency on Government Policy on
Roads Construction
 High Dependency on External Vendors
 Entry into New Markets
◦ Demand Forecasting
◦ Training – Local Technicians
◦ Distribution and Supply Chain Management

5. For Production Capacity Increase
 Pilot Project – North & East India
◦ Hire a assembly line & have a Cooperative Competition
with Ancillaries of Bajaj, Maruti etc. (Launch RFI Plan with
contracts of SLA meeting Quality Control Standards)
For New Market Entry
 Target Market – Travel – Intra City (56% of customer base)
 80% of Customer Base – Balanced & ROI perspective
 Partnerships
◦ Maintenance & Repair– Local Auto Shop
◦ Financing – Banking
◦ Micro Finance Firms & Driving School- CREATING JOBS
NEW GREEN INITIATIVES

6.  International Markets – Not Suggested
FOCUS ON STRENTHENING BRAND & VARIANTS IN
INDIA
 Brand Extension – Existing Markets
◦ Creating New Fad & Attributes
 New Color – Blue, Yellow, Red
 Modification – lights, fender
 Luxury Features for 7% Premium Market
◦ Creating New Trends
 Tata Ace – Off Road Vehicle
 Design – High Ground Clearance /New Suspension
 Retained Earnings pull back for investment in plant
for manufacturing own components – Critical to
design

7. Thank You