BIGNitin Banka

FLOW OF PRESENTATION

Overview Introduction Need and Development of ACE Key Issues Functional Strategy Financial Strategy Operational Strategy Marketing Strategy Competitors Recommendations

HISTORY OF TATA MOTORS

1945 – Tata Engineering and & Locomotive Company Ltd. (TELCO) was established

1954 – Start Manufacturing commercial vehicles 1961 – Exporting Trucks 1966 – Machine tools division in Pune 1983 – Start Producing Heavy Commercial vehicle 1986 – Light Commercial Vehicle, TATA 407

Contd… 1994 – Launch Multi-utility vehicle,

TATA Sumo 1998 – India’s first Utility Vehicle,

TATA Safari 1998 – Launch of Indica 2005 --- Launch of TATA ACE 2008 – Launch of TATA NANO

KEY ISSUES OF CASE

Was there really a need to introduce TATA Ace? Was TATA Motors justified in indigenously

developing a new vehicle instead of buying/licencing technology from already established vehicle manufacturer

Was Tata ace justified to be launched as a last mile distribution vehicle?

INNOVATION SUMMARY

Context Due to pradhan mantri gramin sadak yojana , Road

connectivity is expected to greatly improve in rural areas It is envisaged that higher tonnages vehicles will be not

allowed in cities In both the cases, all last mile distributing will be covered

by large vehicles The exciting production in this category is cumbersome ,

coupled with safety, pollution & comfort etc.. issues

Challenge Challenge was create 4 wheeler at the cost of 3 wheeler

that would create paradigm shift in movement of goods The vehicle should be useful in urban as well as rural

area Vehicle should have good maneuverability to get through

small balances

INNOVATION

Develop a 4 wheeler to cater a gap in the market for goods haulages vehicles in sub 1 tone

ACE comes at a nominal premium of 3 wheeler has like car features & runs on diesel.

INNOVATION SCORECARD Uniqueness Create a completely new segment ;segment grew by 9% ACE is the only environment friendly vehicle in this category Complies with the 4 wheeler safety norms Versatility: both in rural & urban Comfort : Protected cabin & larger wheel Safety :Only its classes to have crash test Impact Reduce pollutants as compared to 3 wheeler from 21 % to

40% The product has created a new segment which contributed 15

% companies volume in 1st year

Contd.. Less refueling, more trips

Leverage In the first year of its operation vehicle has over shouted

volume by its 200%. The planned payback period comedown by 100%.

Created a new reference in commercial vehicle segment

LICENSING TECHNOLOGY

Costly Expenditure Create Competitors Legal Constraints Lose Position In The Market

Strategies

Financial Operational Marketing

Financial strategy

Lost Cost strategy initiatives Outsourcing Manufacturing Tooling Marketing Cost Reduction – Direct material cost, Variable conversion cost, Fixed Cost, interest cost reduction Break even point low

Operation strategies

Project CUB!! Heavy truck & last mile distribution vehicle Features important for customers E- sourcing New manufacturing plant at Pantnagar Various strategies Value engineering

Operation strategies

Engine modification Dealership & service

TATA ACE Bharat Stage II and III ENGINE Model : TATA 275 IDI NA BS-II (and BS-III) Type : 4-stroke, naturally aspirated, indirect injection diesel engine Max.

Output : 16 hp @ 3200 rpm Max. Torque : 3.8 mkg @ 2000 rpm Displacement : 700 cc Special Items : catalytic converter (only in BS III)

CLUTCH : Single plate dry friction diaphragm type GEAR BOX : GBS 65-4/5.27 Type : Synchromesh (4 forward gears), Sliding

mesh (reverse gear) STEERING : Mechanical, variable ratio (20.5 to 24.5), 380 mm dia BRAKES     Type : Dual circuit hydraulically activated Front : Disc brakes

Rear : Drum brakes (200 mm dia x 30 mm) Parking Brake : Cable operated mechanical linkages acting on rear wheels

TATA ACE Bharat Stage II and III SUSPENSION     Type : Parabolic leaf spring suspension at both front and rear

Shock absorber : Hydraulic double-acting telescopic type both at front and rear WHEELS AND TYRES Tyres   145R12 LT 8PR RADIAL FUEL TANK  

Capacity 30 liters PERFORMANCE Max. Speed : 64 kmph Max. Gradeability : 16% Grade

restartability : 15% DIMENSIONS   All in mm Overall Length (A) : 3800 Width : 1500 Wheel base (D) : 2100 Overall height

© : 1820 Track Front (E) : 1300 Track Rear (F) : 1320 Min Turning Circle Dia : 8.6 m

WEIGHTS     Max. GVW : 1550 kg Kerb weight : 805 kg Seating capacity : Driver + 1

Marketing ACE !!

Value proposition Pricing strategy Positioning: sub -one ton pay load segment Distribution: South India Export Promotional strategies : Chota Haathi, Life Ban Jayegi Pyaare

Value enhancers……

Looked and performed better than the existing alternatives. Addressed the key concern of commercial vehicle buyers : Lead & Load

Impact of ACE on Tata Motors

Leveraged the First Mover’s Advantage

Recommendations

Cost down efforts Focus on quality in process/design Focus on distribution network

(channel partners)

Learning's

Balance between quality, cost and time. Stretch targets and motivate the team to achieve the desired objectives Set a common goal and a objective

QUESTIONS??