Tata Motors said on Thursday it was set to launch the first car under its new Tata TAMO brand next month. With the brand aimed toward testing new technologies and enabling the company to become a lot of responsive to dynamic market trends.
Tata Motors Launches Tata TAMO :
“This is about proof of concept … About bringing new technologies and concepts quick to the market,” managing director Guenter Butschek told reporters at an event in Mumbai.
“Eventually we’ll decide to take some of these ideas into the mainstream,” he said. Butschek didn’t disclose how much has invested so far. However the first car under the brand launched at the Geneva Motor show in March. The company said in a statement, without giving more details.
Trade magazine Autocar has said that the first Tata TAMO car are going to be a two-seater, mid-engined sports car, internally known as the Futuro. Tata Motors, maker of the loss-making Nano tiny car, also said on Thursday. It was restructuring its passenger vehicles business in India. Which has reducing the number of car platforms from six to 2 to enhance production efficiencies. The 2 modular platforms, to introduced in 2018, can carry totally different power trains together with hybrid and electrical. And a large vary of various body designs including hatchbacks, crossovers and sport-utility vehicles (SUVs). The platforms can enable Tata Motors to widen its product range, taking it into market segments where it’s previously not been, the company said.
Adding that it’s seen a shift in demand towards premium hatchbacks and SUVs and away from saloon cars. While some of Tata Motors’ existing and recently-launched cars are going to designed on the new platform. The shift can naturally permit it to phase out older models that it doesn’t see potential for, Butschek said. The company is additionally reviewing its supplier base and plans to drastically reduce the quantity of suppliers, he said.
Tata Motors, which owns British luxury car manufacturer Jaguar Land Rover. Hence has previously faced criticism for being slow to react to changing trends and has lost market share as a result. The corporate currently expects Tata TAMO to help it meet its target of turning into one of India‘s 3 biggest car makers by the top of March 2019. Because it helps reposition the brand image. Organised like a start-up, Tata TAMO could employ people from outside the industy. Hence who can focus on sourcing new technologies and forming partnerships to develop new transport concepts, the company said.
The first product developed by Tata TAMO expected to be a luxury sports car and will premiere at the 87th Geneva Motor Show on 7 March, said MayankPareek, president at Tata Motors. The low-volume car will be aspirational in nature and have a “huge positive rub-off on the overall passenger vehicle business”, Pareek added.
The yet-to-be named model expected to travel on sale someday in fiscal 2018. Which will also be the year when Tata Motors will be launching two new platforms based on AMP (advance standard platform) architecture. Which can underpin its future model strategy, said Pareek.
The Tata TAMO initiative has the potential to transform its brand image. And help the company connect with the gen-next customers, said Puneet Gupta, I.H.S Markit. Recently introduced models—Tiago compact car and Hexa SUV—have helped Tata Motors improve its brand image significantly. Currently the creation of a sub brand will further help, he said.
“We believe by 2020, Tata Motors will build a strong comeback and become No 3 player within the lightweight vehicle market in India,” said Gupta. As a part of the strategy, Tata Motors will deliver seven-to-eight product variants from 2 platforms. For greater coverage and economies of scale, Pareek said. “The new approach supports our effort to reduce complexity, enables future technologies and ensures global relevance,” he said. The strategy is similar to the ones followed by global car manufacturers, including Suzuki Motor Co. And Volkswagen AG. The initiative to set up an innovation centre is also not unique. Utility vehicle market leader Mahindra and Mahindra Ltd has a similar innovation centre.
Tata TAMO will act as an open platform to network with global start-ups and leading technology companies to access new trends, innovations and solutions for the design of future products and services, said Guenter Butschek. It’ll produce a digital ecosystem, which can leveraged by Tata Motors to support its business, he added.