New Delhi: The “people’s car” from Tatas could create a major dent in the top-end motorcycle sales with its lucrative price tag, provided the corporate house gets the product right at the first shot, international consultancy firm J D Power on 22 March said.
“Unlike Indica, in which Tata Motors’ got a second chance, it is doubtful if it would get a similar one with the Rs one lakh car as consumers have become more discerning and demanding,” JD Power Director India Mohit Arora said.
When Tatas’ launched the Indica in 1998, it was not received well with the product having to overcome teething problems. Later on when the company rectified the issues, sales of the hatchback picked up propelling Tata Motors to the number two spot in the Indian car market.
Arora said assuming Tatas get the product, after sales service and spare parts right, the Rs one lakh car can spark a new segment of customers.
“The two-wheeler market in India could see a dent at the top-end because of the Rs one lakh car, but how far reaching will it be, will depend on the product’s performance, after sales service and overall customer satisfaction,” he added.
Even the rural customers, one of the main targets of the car are becoming demanding and less forgiving, he said.
The international consulting firm also said that Ratan Tata’s ambitious project has become a global case study with its progress being monitored by automobile industries across the world for possible replication in different markets.
“Rs one lakh car is a case study, which the whole world is watching. If successful, the car can spark demand in a new segment. Brazil and China are looking for similar products,” J D Power Asia Pacific Managing Director Gerrit Kuyntjes said.
Commenting on the Indian passenger car market, Arora said: “The car market would see exciting times ahead with sales volume expected to cross the 1.8 million units mark by 2010.”