Two years after it acquired the iconic British carmaker Jaguar Land Rover, the country’s third-largest car manufacturer Tata Motors has firmed up plans to enter the premium sedan category dominated by the Hondas, Skodas and the Audis.
The proposed sedan, which would be the most expensive car from the company’s portfolio, would be developed with the help from engineers of Jaguar Land Rover.
Last month the company launched the Aria, which has been promoted as a cross between an SUV and a sedan, is currently the most expensive car from the company’s portfolio at roughly Rs 15.5 lakh.
Though no tentative price points for the car has been shared yet, sources told FE that the company wanted to leverage the technology of JLR to penetrate deeper into the premium car market.
The company is also looking to climb up the value chain and give its customers an opportunity to simultaneously climb up the price chain as well. “Tata Motors has the wherewithal to enter the category. It could be seen in the context of a completely new branding strategy from the company,” the source said.
“One segment where we are going to see more cars from Tata Motors is the sedan category,” the source said.
He explained the company was seeking to be an end-to-end player in the sedan segment, offering cars from sub Rs 1- lakh to Rs 25 lakh plus.
Currently, the company has started preliminary work on developing a new platform, which would roll out a refurbished Indigo followed by another sedan.
When contacted, the company spokesperson said, “Tata Motors does not give guidance on its product plans.”
Auto analyst with the Angel Broking Vaishali Jajoo said the Rs 18-22 lakh category was growing every month and Tata Motors could use its network to create a foothold in this category.
“They acquired JLR not merely to take over their sales. With the technology of JLR, it makes sense for Tata Motors to leverage it and enter the premium sedan segment,” she said.
Leader of automotive practice at PricewaterhouseCoopers Abdul Majeed added that the aim of the company was to be an end-to-end auto player. “Tata Motors wants to be present across product segments. From a Nano to premium sedan, that is the strategy they are following,” he said.
At present the premium sedan category contributes less than 2% to the overall passenger car market sales.
In October the segment sold a total of 1,452...
Source : financialexpress.com