Tata Tiago is all that is needing for Tata Motors at the moment; Emerges as top contributor to the company

Tata Motors passenger vehicle division since a couple of years is steadily declining. With the aging portfolio like Indica, Indigo, Sumo & Safari and the good but not selling well cars like Bolt & Zest and the Nano which was hugely hit by introductory marketing failures is finally tasting success with its new kid on block Tiago.

Previously at the time of introduction of Zest and Bolt, Tata Motors thought these new products will revive the company’s sales but they failed to find takers and disappointed the company. Though they failed to move out of the showrooms , they succeeded to change consumer’s perception towards Tata cars. Mainly, the inclusion of Harman’s Connectnectnext infotainment system won the consumer’s hearts. And Tata also improved a lot in various other departments like interiors etc. Despite all these efforts Zest & Bolt due to their design resemblance with Manza & Vista and lack of interior place for nick-nacks proved to be sales failure for the company.


January 2016, arrives Tata Tiago with all new design language called Impact Design Philosophy. Good looks backed by attractive features and competitive pricing helped Tiago fly off the selves like hot cakes. Presently, the only thing holding back Tiago sales is limited production capacity at the Sanand Factory.


Tiago proved to be a consistent seller for Tata Motors since its launch. Sales gradually increased month over month and finally Tiago helped Tata Motors to grab third position in November 2016 sales. And the car with sales of 6008 units also grabbed 10th position in the top 10 selling cars list of November 2016.


Tiago’s contribution to Tata Motors overall passenger vehicle sales also increased gradually month over month. In the month of February it started with 10% contribution to the total sales. Then plummeted to zero in March due to some unknown reasons from the company side. In April, Tiago’s contribution rose to 28.9% and afterwards remained above 30% until October. In November, Tiago’s contribution to total sales rose to a whopping 47% that is almost half of the company’s PV sales.

Tata to hold on to the sales momentum is planning to introduce Tiago Sport & Tiago Aktiv and shelved the plans to introduce Bolt Sport.

With the introduction of Hexa , Kite5 and Nexon , Tata is bound to grow further.

Author: Prasanth Chunduri

I am an Independent Financial Advisor advising about mutual funds. Apart from my profession I am interested in cars and bikes.

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