5,00,000 Tata Ace in 5 years

By K. Gopalakrishnan

This is the most interesting picture of Tata Ace found while I googled for information about the product. What was interesting to note is that the internet is full of case studies, reports and analyses on the success story of the Tata Ace. No wonder, the company has sold over five lakh vehicles in five years flat. That’s an incredible achievement for a company which thought out-of-the-box and created a completely new product category that never existed earlier.

It all started in December 2000 when a young engineer at Tata Motors, Girish Wagh, was given a brief by Mr. Ravi Kant, the then Executive Director of the company, to create a new light truck line that would add to Tata’s current truck range. It was to be economical and to take on the three-wheeled cargo auto rickshaws in the Indian market. Based on this brief, Wagh and his team approached users of three-wheel cargo rickshaws and got their feedback on Tata’s future four-wheel cargo vehicle. The feedback indicated the need for an economical vehicle that could take light loads over short distances and offer better stability, safety and comfort. Additionally, the feedback also revealed that future owners would prefer a four-wheeler cargo vehicle for the perceived prestige it would offer over a three-wheeled vehicle.

Recognizing a gap in the market for small commercial vehicles, Tata Motors worked towards an innovative solution. In an era where there is a need to transport goods speedily, conveniently and in a cost-effective manner, while providing comfort, style and easy maintenance, the company launched the Tata Ace, India’s first mini-truck with a sub-one tonne payload in May 2005. This revolutionised the commercial vehicle industry by carving out a new segment for itself. It not only provided a safe and reliable mode of transport for three-wheeler drivers but also became a major source of livelihood in rural as well as semi-urban markets. Today, one out of every four commercial goods carrier vehicles sold is a Tata Ace.

The Tata Ace was a big hit selling one lakh units in just 20 months. As of May 2010 Tata Motors sold five lakh vehicles in just five years, creating history in commercial vehicles.
Ideal for short, narrow village roads as well as long highway hauls, for small bulky loads and large heavy ones, the Ace was an innovative four-wheeler offering for the first time in this category. The small exterior belies the power-packed technologically-superior engine which gives the vehicle high power and high loading capacity.

A large part of the Tata Ace customer base (about 55 per cent) is formed by first-time users who are purchasing the vehicle model to start a goods transportation business. Thus the Tata Ace has clearly established its position as a desirable mode of self-employment. The Pantnagar plant manufacturing it has a capacity of 250,000 units for the Ace family. With brand extensions, the Tata Ace portfolio now comprises the Ace, Ace HT, Ace Ex (with stop-start technology), Ace CNG and the Super Ace (one tonne).

With sales of about 30,000 units in 2005-06, its footprint more than doubled in 2006-07 to over 70,000 and further grew to over 89,000 units in 2007-08. Even in 2008-09, a year impacted by the downturn in the commercial vehicles industry, the Tata Ace clocked sales of over 81,000 units. In 2009-10, sales crossed the one-lakh mark to reach 110,032 units, registering a growth of 36 per cent.

In the mini-trucks segment, Tata Motors enjoys an 81 per cent market share and nearly 64 per cent of the total commercial goods carrier volumes (all figures for 2009-10).

In June 2007, the company launched the Tata Magic, developed on the Ace platform, as a comfortable and safe four-wheeler for public transportation. This model too is accepted very well in semi-urban and rural areas, and in 2009-10 its sales were close to 49,000 units, a growth of 71 per cent over the previous year. Taken together, sales of the Tata Ace and Tata Magic exceeded 150,000 units in 2009-10.

Tata Motors showcased the Tata Magic Iris at the New Delhi Auto Expo in January last. Like the Tata Magic, this has been developed on the Ace platform and will be launched this year. Its spacious car-like cabin can comfortably seat four passengers – three in the rear and one beside the driver. With its on-road stability and sheet metal roof it provides car-like safety. With its bouquet of features, this ideal small passenger carrier will both enhance the quality of public transportation and improve the income of owners.