Wednesday, November 4, 2009

CREATIVE EFFORT HELPS TATA SALES

       What does a company do if its drivers are not willing to read the users' manuals of the vehicles they will drive? Tata Motors has come up with an answer: give them a comic book.
       Tata is about the launch a comic-book version of the user's manual for its Xenon CNG pickup. It's part of the Indian automaker's intensified focus on its commercial-vehicle division and comes after little more than a year's experience in selling vehicles in Thailand.
       The Xenon CNG, aimed solely at the commercial-vehicle market, has net quite a few obstacles. Prominent among them is the need for drivers to read the uder's manual to get a better understanding of the CNG-fuelled vehicle, because its operation is technically different from that of a standard diesel pickup, so the company sought a simple solution: produce something the drivers want to read. The result is a comic-strip version that touches on the technical aspects of the Xenon CNG.
       "The Xenon CNG has a fuel valve that needs to be opened and closed manually when refuelling. Failing to open the valve after refuelling leads to the engine shutting off. Because most drivers have not read the users manual, they don't realise the most probable reason the engine won't work is they have forgotten to open the valve. The comic-book version will defitely be more entertaining to read for these drivers," said Tata Motors (Thailand) CEO Ajit Venkataraman.
       The Xenon CNG is now be only dedicated CNG truck in the automotive market. The only vehicle that can be considered a competitor is the Chevrolet Colorado CNG, which uses a dual-fuel system that mixes diesel and CNG to provide extra range.
       The biggest problem with a dedicated CNG vehicle is its range. In Thailand, CNG fuelling stations have not yet spread around the country, so a driver could be stranded somewhere with no fuel at the end of the Xenon CNG's limited 150-200-kilometre range.
       "This is not a problem, as most of our fleet customers have very well-planned routes. The vehicles run the same fixed routes every day and fill up at a certain station every day. If a vehicle does run out of fuel, our dealers will send out a service vehicle with a CNG refuelling tank," Venkataraman said. "We actually discourage privaate users from buying the Xenon CNG, because this [refuelling] can be a hassle at times. For private users who are fuel-cost conscious, our 2.2-litre diesel engine is ideal."
       The Xenon CNG's limited range and the failure of drivers to read the manual are not the only problems Tata has faced. Another is brand acceptance. Being a new pickup manufacturer in the world's second-largest pickup market means they're playing at being a seal in the company of sharks. The long-standing local operations of Japanese auto-makers have built up a loyal customer base unwilling to try an Indian pickup-maker.
       "The Xenon CNG has been a great product for us to penetrate this market. Fleet operators do not want another diesel pickup, as there are enough in the market already. The Xenon CNG cuts fuel costs, and fleet operators can see the benefits of the vehicle. Initially, they always order only one vehicle, but after seeing the benefits they order more," said sales director Abhichet Sitakalin.
       Another advantage of the Xenon CNG is its fuel cannot be stolen. Fleet operators say stolen fuel accounts for a major increase in costs. With CNG, extracting the fuel requires equipment costing Bt30,000, and the low cost of CNG makes stealing it not worthwhile.
       At present, more than 90 per cent of the vehicles Tata sells in Thailand are for commericla use. At next month's motor expo, the company will launch the Xenon Giant, a dedicated CNG pickup with a large bed and an extended fuel range of 300-400 kilometres. The company hopes the Xenon Giant will lead to a significantly increased market share.
       Tata sold a mere 722 units in the first nine months of the year amid claims it was being overly optimistic. It says CNG-fuelled vehicles account for 30 per cent of current sales, and this figure is expected to reach 50 per cent next year with the new Giant entering the market.
       Venkataraman said Tata was also monitoring other opportunities in the Thai market
       "Although Tata is a major player in the bus and truck market in India - the second-largest bus and truck market in the world-it is unlikely we will enter the Thai market, because of its small size," he said.

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