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Tata Motors To Launch Cheaper Aria Crossover
The current Tata Aria with a 2.2-litre DICOR engine costs between Rs,13.54 lakh and Rs.46.20 lakh in Mumbai. According to reports from the Society of Automobile Manufacturers sales of the Tata Aria have been lesser than 100 units per month from initial sales of about 300 units per month.
A Tata Motors dealer who wished not to be named said the pricing and the positioning of the Aria was working against it. He expects the cheaper Aria to boost sales.
A Tata Motors spokesperson said: “We do not share brand-wise sales figures. The Tata Aria"s sales are progressing according to plans. We do not provide any guidance on future product development initiatives."
JD Power Asia Pacific has said Tata Motors has sold over 900 units of the Aria in the first five months. Ammar Master, senior market analyst, JD Power Asia Pacific said: “The Aria"s high-price tag is limiting its volume potential, and the model is performing below expectations. A 2WD may give customers another choice, but the right pricing will be the key to improving sales."
The Toyota Innova and the Mahindra Xylo are the Tata Aria's main competition. Tata Motors has already made a change in its marketing strategy for the Aria by highlighting its 36 features.
The Aria competes with the Toyota Innova and Mahindra & Mahindra (M&M) Xylo. At the time of launch last year, Tata Motors had positioned Aria as India"s first crossover with a premium touch, but soon had to re-think its strategy, with the marketing campaign not picking up as expected. The company now runs a new marketing campaign highlighting the 36 features offered in the Aria.
Tata has to move quickly to regain sales of the Aria as increased fuel prices will adversely affect sales of utility vehicles. With diesel prices already up by Rs.3, sales of utility vehicles are not expected to post a growth of more than 9 per cent this year.
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