Tata Indica V2 Xeta: Competing in the Indian Small Car Market

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Case Details:

Case Code : MKTG177
Case Length : 28 Pages
Period : 2006 - 2007
Pub Date : 2007
Teaching Note : Available
Organization : Tata Motors Limited
Industry : Automobile
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Enter The Xeta! Contd...

Subsequent Modifications
In November 2006, Tata Motors launched a new 1.2-litre engine option for the Xeta range at an introductory limited period discount of Rs 25,000. (See Exhibit XI for print ad). The new variant followed the reduction in excise duty (16 per cent excise duty vis--vis 24 per cent for the petrol model with a 1.2-litre engine,) in the Union Government's Budget 2006-07...

Retail Network Support
Tata Motors' sales and distribution network in India consisted of 720 dealer outlets which were supported by eight regional offices, 28 regional sales offices and 38 sub-regional offices. Most of the dealers were exclusive dealers.

The company had a presence at over 2,000 locations in India, including after-sales and vehicle servicing outlets...


The Indian automotive industry has been growing substantially over the years, and is poised for major change. (For sales trend in the domestic automobile market since 2001-02 see Exhibit XIII). New challenges are likely to come both from the opening of the domestic market to imports and the entry of international automotive manufacturers. To meet the needs of changing times, domestic automotive manufacturers are being forced to reduce costs, improve productivity, enhance quality, reliability and durability, increase market orientation and create a high level of customer loyalty...


Exhibit I: The Automobile Industry in India
Exhibit II: Industry Performance (Domestic) in the Passenger Vehicles Segment during 2005-06 with Breakup of Passenger Cars, Utility Vehicles and MPVS
Exhibit III: Product Profile - Tata Motors
Exhibit IV: Consolidated Financials of Tata Motors for Financial Year 2007
as Compared to 2006
Exhibit V: Picture of Indica V2 Xeta
Exhibit VI: Detailed Specifications and Features of Indica V2 Xeta Petrol
Exhibit VII: Tata Motors' Competitors - Profiles
Exhibit VIII: Diesel Cars vs. Petrol Cars
Exhibit IX: Online Advertisement Campaign for Xeta
Exhibit X: Print AD for the "Four Million Smiles" Offer
Exhibit XI: Print AD for the Introductory Discount Offer after Launch of Xeta's 1.2 Litre Engine Variants
Exhibit XII: Portion of the Tata Motors Web Page for the Xeta as a Part of the
New Indica V2 2007 Range
Exhibit XIII: Vehicle Sales in the Indian Automobile Market
Exhibit XIV: List of Small Cars Available in India (as of June 2007)
Exhibit XV: List of Mini, Compact and Mid-Size Cars Scheduled to be Launched in 2007 and after (as of June 2007)
Exhibit XVI: Passenger Cars being Developed by Tata Motors in the Post-Xeta Period


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