28 August, 2015, The Hindu Business Line
Tatas confident of big numbers
Ravi Pisharody believes the Tata Ace Mega launched on Thursday is the most significant product in the Ace family since its debut in 2005.
“It is just not paint and colour but substantial on delivery,” the Executive Director of Tata Motors’ Commercial Vehicle Business Unit said in a telephone interview.
With a price tag of Rs 4.3 lakh (ex-showroom, Thane) and a one-tonne payload, the Ace Mega will compete in a segment where Mahindra & Mahindra is the leader.
Tata Motors is confident that the product will do the trick in boosting numbers given its speed leading to quick turnaround time and mileage of nearly 19 kmpl. The low cost of ownership is the biggest USP for the Ace Mega as it endeavours to reach out to entrepreneurs across the country.
Over the last decade, the Ace has already notched up sales of over 1.5 million units and is still going strong. If it continues the present growth momentum, sales could touch the two million unit market by 2018-19.
Pisharody says the Ace is a brand personality for Tata Motors which has more than carved a niche of its own in the compact CV space. Consequently, other products like the Magic and Winger have also followed a similar branding route.
The commercial vehicle industry, which was in the dumps for two successive fiscals, is now clawing its way back to growth. The medium and heavy space has seen more replacements happening which have fuelled demand. In addition, the new BS-4 emission norms will translate into more demand. Light commercial vehicles, on the other hand, have suffered largely due to lack of finance though the situation has been improving.