Tata Motors has lost quite a bit of market share in the previous one year. The company lost its number three position to Mahindra in the last few months. In order to tackle changing market conditions, the complete top management of Tata Motors has been restructured, with more experienced individuals now at the helm of the company. Tata Motors wants to be the number two player in the Indian car market by 2020, a task which seems herculean looking at the current state of affairs. However Tata Motors has quite a few interesting vehicles up its sleeve.
The company will launch a sub 4-metre version of the Tata Indigo Manza in June 2013. Tata Motors was the first company to come up with a sub 4-metre sedan (the Indigo CS). However competition in the sub 4-metre space has amplified in the past few years, with the Maruti Suzuki Swift DZire taking the lead in the compact sedan space. Soon Mahindra and Honda will launch their sub 4-metre vehicles, the Verito and Amaze respectively. Tata Motors plans to tackle these new competitors with the launch of the Manza CS.
Our rendering of the Tata Manza CS reveal that a compact sedan can be very attractive indeed. While there is quite a bit of compromise on boot space, the benefits in terms of excise duty are massive. A sub 4-metre vehicle (with small car specific engines) attracts a duty of just 12 percent, compared to 24 percent on longer than 4-metre cars. This benefit is passed onto the customer, resulting in a very attractive pricing for compact sedans. Expect the Manza CS to be positioned between the Indigo CS and the regular Manza.
