Nexon and Harrier by Tata Motors: - Tata Motors was renowned for manufacturing station

wagons and SUVs prior to entering passenger car segment in 1998. On 30th December 1998,

Tata Motors launched its first passenger car, Indica. They continued to produce variants of

Indica under brand names Indica V2 and Indica Vista till 2018, when they discontinued

manufacturing of cars under brand Indica. Due to several technical and cosmetic problems,

Indica could not become a popular choice of car owners. It always stayed as 'one of the

many' brands. In spite of improved manufacturing standards, Indica Vista too remained an

averagely performing vehicle on the sales charts. Due to superb value-for-money, spacious

interiors and wide service network, Tata Cars became popular as cabs. This popularity as

commercial transport further dented Tata Motors' chances to become popular among private

car owners. In the meantime, Tata Motors acquired British carmaker, Jaguar-Land Rover

(JLR) in 2008. This was one of the aggressive moves by Tata Motors, an Indian automobile

giant. After the acquisition, Tata Motors got access to technically superior manufacturing

processes of JLR. Using this newly owned technology Tata Motors developed and launched

two new cars, Tata Nexon in 2016 and Tata Harrier in 2019. The sales of these cars are

picking up in the market. Tata Nexon is in the price band of 8 to 15 lakhs and Tata Harrier is

in the price band of 17 to 25 lakhs.

1. What according to you should be done by Tata Motors to shed the image of 'cab' and

become popular among the private car owners? (10 Marks)

2. Do you feel heavy discounts should be offered to increase sales? Justify your answer with

reasoning.