Tata Motors: Serving an ‘Ace’ for Success
Understand the impact of Tata Ace on the three wheeler cargo vehicle/ very light commercial vehicle market segment in India
This case is about the development of ‘Tata Ace (Ace), a mini truck introduced by Tata Motors Ltd. (Tata Motors), Indias largest automobile company, in 2005. The case describes how Tata Motors developed this vehicle using their in-house expertise. Tata Motors decided to develop Ace, after a market study it conducted found that customers wanted a last mile distribution vehicle that had low maintenance costs, higher driver safety, and better driving comfort. Ace created a completely new market segment and became a huge success in the Indian market. The case also discusses about the nature of competition in the Light Commercial Vehicle and the three-wheeler cargo vehicle segment in India and the impact of the success of Ace on the players operating in these segments.
Q1. Understand the aspects related to the new product development process in the Indian Light Commercial Vehicles (LCV) segment of the Indian automobile industry.
Q2. Understand the impact of Tata Ace on the three wheeler cargo vehicle/ very light commercial vehicle market segment in India
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