Tata Sumo and Nano to be phased out soon
Tata Motors is contemplating discontinuation of at least 4 vehicles in its present product portfolio in the Indian market. The firm has plans to phase out Nano, indigo CS, Indica and Sumo as they are at the end of their life cycle. In addition, the home-grown carmaker intends to limit the present number of platforms from six to two by 2020-21. Vivek Srivastava, Marketing officer, Passenger Vehicle Division, Tata Motors, confirmed the same while speaking to TOI. Recently, Tata Tigor compact sedan was launched in India at a preliminary price of Rs.4.70 Lakhs (Ex. Showroom, Delhi).
“At present, we have 10 cars in the portfolio, including the freshly introduced compact sedan Tigor. Till 2019-20, we will launch at least 4 new cars without increasing the size of our collection. This will mean phasing out of some of the existing cars,” said Srivastava. The company has already stopped the production of Sumo Grande – the first derivative of Sumo, which was launched near 25 years back. The phase out of ageing models like Indica, Indigo CS and Sumo can also be related to the new security guidelines that require crash test and BS VI emission norms, coming into effect from 2018 and 2020 respectively. The Indica and Indigo CS are presently retailed in commercial segment.
“Before the launch of Tiago, well over half of our sales came from commercial fleet owners. Now, it has gone down to 30%. We hope to further decrease it to 20% as we reposition ourselves as a maker of primarily personal cars,” he said. Tata Motors proposes to be the third largest carmaker in the Indian market by 2019 in passenger vehicle segment. Hence, introduction of new products and phasing out old products would play critical role in achieving this target. Reportedly, Tata is also working on a premium hatch, which would take on the likes of Hyundai i20 and Maruti Baleno while work on a C-segment sedan is also being done to challenge the Honda City and Maruti Ciaz. “At present, the market coverage with the existing range is 50%. We will increase that to 70% with the introduction of Nexon,” Srivastava explained.