Tata Ace

Success Story

Idea Generation _ Driving Factors

Golden Quadrilateral Project lead to increased need for short and long distance inter city goods transport. Rapid urbanization created the demand for a reliable and high performance mode for inter city transport / last mile distribution High GDP growth meant high growth in logistics and transportation Three wheelers lacked on performance, comfort, safety and style parameters and were not sufficient to fuel the needs of the Sub-ton sector.

Idea Generation _ Contd

Clear Absence of Sub-ton carry load vehicle with the following features
High Performance Low Maintenance Comfort Safety Style

Extremely successful examples of such vehicles could be seen throughout the world :
Japanese Kei Truck Korean Kia Bonga

Gap Analysis
Demand Side Gap
Large trucks
Not allowed in cities during day time High per unit cost for transportation made them unsuitable for rural and intra city transport

Three Wheelers
Banned in certain metros to avoid congestion Not allowed on highways due to speed and safety concerns Didnt enhance the social value of the user

 Supply Side Gap

Supreme Court ruling on overloading norms No product in sub-ton category offering features like high performance, low maintenance, comfort, style and safecty

Gap Analysis
Customers : Balanced Perspective and ROI Sensitive Customers would buy Suppliers : Tata Motors could utilize its existing supplier base for commercial vehicles Competitors : No competitors; New ProductNew Market

Complementors : High GDP Growth rate, Urbanization and road infra development schemes

Product Development
Market Research
4000 truck and three wheeler drivers were interviewed by Tata Motors Following factors were identified as significant
Versatility Savings Safety Performance Comfort Style

Tata Ace _ Versatility

12 tyres have higher ground clearance and support greater load capacity Rigid front axle for handling tough roads Turning radius of 8.6m for sharp turns Truck like strength of the front and rear leaf spring suspension gives a smooth riding experience

Usage varies from rural transport to short distance inter city transport to intra city last mile distribution within large cities

Tata Ace _ Savings

Comfort for the driver allows the ACE to travel more than 500 km a day Ample load space with three side panels High reliability with low operational and maintenance cost

Tata Ace _ Safety

M1/N1 safety norms for frontal crash, roof crush, etc. Seat belts and better halogen lamps Better front and rear brakes Frontal windshield pasted to the steel frame to add structural strength Large windscreen, large rear-view mirror and the large rear window

Tata Ace _ Comfort

Sheet metal cab with doors, roof lining, floor mat protection from adverse weather Control pedals, gear shift and parking brake ergonomically positioned Sun Visor for protection from direct glare

Tata Ace _ Performance

Powerful and smooth engine High Torque Meets BS 3 standards Lowest loading height Efficient and smooth gearbox

Tata Ace _ Style

Styled dashboard with tray, digital clock, radio fitment provision, utility tray and clearly visible instrument cluster

Smooth external finish exquisite look

Flat-faced large commercial vehicle look Lockable glove box for keeping documents

Sales Figures
2005-06 : 30,000 2006-07 : 70,000 2007-08 : 89,000 2008-09 : 81,000 2009-10 : 1,10,000 2010-11 : 1,60,000 2011-12 : around 2,00,000