TATA MOTORS
TATA NEXON
Introduction & Industry Overview
1. Indian Automotive Market Growth:
"India’s automotive industry is growing rapidly,
projected to be the 3rd largest globally by 2030."
2. Compact SUV Segment Popularity:
"Compact SUVs now account for approximately 20% of
all passenger vehicle sales, driven by urbanization and
rising incomes."
3. Tata Nexon’s Unique Positioning:
"Tata Nexon stands out with its high safety ratings,
multiple fuel options (petrol, diesel, EV, CNG), and focus
on eco-friendly technology."
4. Commitment to Safety and Sustainability:
"The first Indian car with a 5-star Global NCAP safety
rating, reinforcing Tata's commitment to consumer
safety and environmental responsibility."
COMPETITOR ANALYSIS
By offering high safety standards and multiple fuel options, Tata Nexon effectively meets the diverse needs
of Indian consumers in a rapidly growing SUV market.
Tata Nexon leads the compact SUV market with strong sales, surpassing key competitors like Maruti Brezza,
Hyundai Venue, Kia Sonet, and Mahindra XUV300
Growth in Electric
Vehicle (EV) Adoption
Market Growth in India: Rapid growth in India’s EV market,
driven by government incentives and environmental awareness,
with a projected CAGR of over 40% by 2030.
Tata Motors’ Role in EV Growth: Tata Motors leads India’s EV
sector, selling over 31,000 EVs in the first five months of FY2024,
showing an 81% year-on-year increase.
Contribution of Tata Nexon EV: Tata Nexon EV, with its
affordable pricing, extended range, and fast-charging, aligns
with sustainable mobility goals and appeals to eco-conscious
consumers.
Future Prospects and Sustainability: Tata’s commitment to
expanding EV infrastructure and sustainable technology
supports the long-term growth of Nexon EV in the Indian
market.
Tata Nexon made history by becoming the first car from
an Indian manufacturer to receive a 5-star Global NCAP
safety rating! This milestone positioned Tata Motors as a
Porter’s Five leader in vehicle safety in India, sparking greater
consumer awareness and interest in safety features
across the automotive industry. The success of the
Forces Nexon's safety rating has driven Tata Motors to
emphasize safety as a core brand value, influencing the
development of subsequent models and raising the
safety standards in India’s automotive market.
1. Threat of New 2. Bargaining Power of 3. Bargaining Power of 4. Threat of 5. Industry Rivalry
Entrants: Suppliers: Buyers: Substitute Products: Intense:
High Entry Barriers: Public Transport &
Diverse Supplier Informed Consumers: Competition: Tata
High capital investment Buyers can easily Ride-Sharing: While Nexon faces
Network: Tata
and compliance compare Tata Nexon’s alternatives like
Motors’ broad competition from
demands in the features and prices with public transport
supplier base Maruti Brezza,
automotive sector competitors, increasing
minimizes reliance and ride-sharing are Hyundai Venue, and
create a tough their negotiating power.
environment for new on individual Product Differentiation:
available, the Kia Sonet but holds
entrants; Tata Nexon’s suppliers, while key Tata Nexon’s unique demand for a leading 28%
5-star Global NCAP partnerships ensure offerings, like multiple personal vehicles market share with
safety rating further fuel options (petrol, remains high. Tata 171,697 units sold as
quality and stable
solidifies customer diesel, EV, CNG) and high
production. Motors reported of FY2024,
loyalty and acts as a safety standards,
enhance customer loyalty total sales of 82,682 supported by
competitive barrier.
and reduce price units in October ongoing innovation
sensitivity. 2024. like the Nexon EV.
Marketing Mix
Product
Safety: First Indian car with a 5-star Global NCAP safety rating, aligning with
60% of Indian buyers who prioritize safety.
Fuel Options: Offers petrol, diesel, EV, and CNG variants, meeting diverse
consumer needs.
Nexon EV: Leading Tata’s EV lineup with 64% of Tata’s EV sales; 31,911 EV
units sold between April-August 2023.
Technology & Infotainment: Features a 7-inch touchscreen with Apple
CarPlay and Android Auto; lacks advanced features like wireless charging
offered by competitors.
Promotion Place
Price
Advertising Campaigns: Highlights safety (5-star Extensive Distribution Network: Over 1,000
Competitive Pricing: Priced between ₹7.80 rating), sustainability, and value-for-money, dealerships across India, expanding into Tier-
lakh and ₹14 lakh for petrol and diesel models, appealing to families and eco-conscious buyers. 2 and Tier-3 cities, where compact SUVs
capturing a 28% market share in FY2024. comprise about 20% of passenger vehicle
Digital Marketing & Influencers: Engages young sales.
Value-Based EV Pricing: Nexon EV starts at
urban audiences through social media and
around ₹14.50 lakh, with government subsidies After-Sales Service Expansion: Focused on
influencer partnerships on platforms like
under FAME II making it affordable for eco- standardizing service quality, especially in
Instagram and YouTube.
conscious consumers. semi-urban and rural regions, to boost
customer satisfaction.
STRENGTHS S WEAKNESS
WEAKNESS
Inconsistent After-Sales Service: Lower satisfaction levels due to
High Safety Standards: Tata Nexon’s 5-star Global NCAP safety rating meets the
demand of safety-conscious consumers, with 60% prioritizing safety features. W regional inconsistencies compared to Maruti Suzuki’s robust network
Diverse Product Range: Offers petrol, diesel, EV, and CNG options, with Nexon EV
making up over 64% of Tata’s EV sales in FY2023. O Limited Advanced Technology Features: Lags behind competitors in
technology features, with 45% of buyers prioritizing tech upgrades.
Strong Market Position: Leads the compact SUV segment with a 28% market share,
selling 171,697 units in FY2024. T Price Sensitivity: High competition in the price-sensitive segment,
with options like Maruti Brezza offering affordability and wide
Brand Reputation: Tata’s legacy in quality and safety drives customer trust, service coverage.
contributing to 53% passenger vehicle growth in 2023.
A
N
OPPURTUNITY A THREATS
Growing EV Market: India’s EV market is expected to grow at a 49% CAGR
Intense Competition: Strong competition from brands like Maruti,
L
by 2030, with Tata already holding an 80% market share.
Hyundai, and Kia, with Maruti’s network 30% larger than Tata’s.
Expansion into Tier-2 and Tier-3 Cities: Rising compact SUV demand in
these cities, with 20% of sales from these regions.
Y Economic Instability: Price-sensitive buyers may opt for more
affordable options during economic downturns.
Rising Demand for Sustainable Vehicles: Increased environmental
awareness supports Nexon EV growth, aligning with India’s 30% EV
target for private vehicles by 2030.
S Reliance on EV Infrastructure: Limited charging stations, especially in
non-urban areas, may restrict Nexon EV adoption.
Flexible Ownership Models: Growing interest in subscription models I Changing Regulatory Environment: Stricter emission and safety
among 20% of urban buyers opens new sales channels. regulations could increase production costs, impacting profitability in a
S price-sensitive market.
Financial Overview
1. As of November 7, 2024, Tata Motors has not yet released the financial
report for the current fiscal year (FY2024-25). However, the 79th
Integrated Annual Report for FY2023-24 provides comprehensive insights
into Tata Nexon's performance.
2. Tata Nexon Sales Performance in FY2023-24:
3. Total Units Sold: 171,697 units, securing a 28% market share in the
compact SUV segment.
4. Market Position: Tata Nexon led the compact SUV segment, slightly ahead
of Maruti Brezza, which sold 169,447 units.
5. Revenue Contribution:
6. While specific revenue figures for Tata Nexon are not disclosed, its
significant sales volume indicates a substantial contribution to Tata
Motors' passenger vehicle revenue.
7. Electric Vehicle (EV) Segment:
8. Nexon EV Sales: The Nexon EV has been a top-selling electric SUV in India,
contributing to over 64% of Tata Motors' EV sales in the fiscal year 2023.
9. Overall EV Sales: Tata Motors sold 31,911 EVs between April and August
2023, with the Nexon EV playing a pivotal role.
Current and Emerging Challenges
Service Quality Low EV Awareness
"Inconsistent after-sales service across "Limited consumer understanding of EV benefits,
dealerships affects customer satisfaction and including cost savings, environmental impact, and
loyalty." available incentives."
A study by J.D. Power in India found that customer According to a survey by YouGov India, only 32% of
satisfaction in after-sales service is 20% lower for Indian consumers are fully aware of government
Tata compared to leading brands, primarily due to subsidies and long-term cost savings associated
service consistency issues across regions. with EVs, indicating a gap in consumer education.
Infotainment Limitations Range Anxiety
"Nexon’s infotainment system lacks some
advanced connectivity features that are popular "Limited EV charging infrastructure creates range
among tech-savvy buyers." anxiety, especially in semi-urban and rural areas."
Competitors like Hyundai Venue and Kia Sonet As of 2023, India has approximately 2,000 public
offer advanced features such as wireless Apple EV charging stations, mostly concentrated in
CarPlay, Android Auto, and voice recognition, urban centers, which is insufficient to meet the
which are not fully available in the Nexon’s needs of a rapidly growing EV market, particularly
infotainment system, making it less appealing to in Tier-2 and Tier-3 cities.
tech-focused consumers.
Strategic Recommendations to overcome challenges
After-Sales Service Infotainment Upgrades
Standardize dealership services through regular Upgrade Nexon’s infotainment system with
training and a centralized feedback system to advanced connectivity features like wireless Apple
enhance customer satisfaction and loyalty. CarPlay, Android Auto, and voice control to appeal
Maruti Suzuki’s structured training and feedback to tech-savvy consumers.
model led to a 15% increase in customer Ford’s OTA upgrades improved satisfaction
satisfaction, showing how uniform service among tech-focused buyers , showing the impact
standards can improve loyalty. of staying up-to-date with in-car technology.
Charging Infrastructure Flexible Financing
Expand EV charging infrastructure in Tier-2 and
Tier-3 cities through partnerships with Introduce low EMI, no-down-payment options, and
government and private entities to alleviate range subscription models to make Nexon more
anxiety. accessible for budget-conscious buyers.
Tata Power’s partnership with Indian Oil for urban Tesla’s flexible financing led to a 15% rise in
charging stations increased EV accessibility, adoption in price-sensitive segments, highlighting
suggesting a similar approach in smaller cities how financing options can expand the consumer
could boost Nexon EV sales. base.
Conclusion
Tata Nexon’s Competitive Positioning: Nexon stands strong in the compact SUV
segment, differentiated by its high safety standards, variety of fuel options, and eco-
friendly initiatives.
Key Challenges: Addressing after-sales service consistency, enhancing infotainment,
increasing EV awareness, expanding charging infrastructure, and managing price
sensitivity.
Strategic Recommendations: Focus on standardizing service quality, running
educational EV campaigns, upgrading infotainment, building charging infrastructure,
and offering flexible financing options.
Future Outlook: Tata’s commitment to innovation and customer-focused
improvements positions Nexon to meet evolving consumer needs and stay
competitive in a dynamic automotive market.
Thank You
Group 3
Sources:
[Link] Motors Annual Reports: [Link]
2. Tata Motors Financials: [Link]
3. Tata Motors Press Releases: [Link]
[Link]
