Tata Motors battles perception, gears up to launch Zest

Tata Motors is accelerating its marketing and promotional activities as it gets closer to launching its compact sedan Zest, which is scheduled to hit the roads in August.

Tata Motors hasn't had a new car launch for almost 4 years now and has lost market share and customers. In 2013-14, its total passenger vehicle sales slumped 38% to 1.38 lakh units. It is banking on the Zest and Bolt (to be launched soon after) to turnaround its fortunes.

While the cars got rave reviews when they were first showcased, analysts say its biggest battle is to change people's perception of Tata branded cars, which many feel are good enough for taxis and are only diesel powered.

"To change that, the company has started sending out test drive offers to people and that has got responses in thousands," said Ranjeet Yadav, president, passenger vehicle business unit, Tata Motors.

Apart from journalists, it has showcased Zest among the financial community. It has also set-up demo labs at malls to promote the new Revotron petrol engine to people. It will also finish upgrading 150 showrooms by August.

"For Zest or any other car planned in our HorizonNext journey, we articulated four vectors — intense product focus, world class quality and manufacturing, best in class sales and service," Yadav said.

The Bolt and Zest will not just be sold in the domestic market, but will be promoted as global cars and exported over time along with its other products.

The company is also working on several products, with 2 new launches planned each year.