Tata Indica - The Making Of The Small Car
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LEVERAGING THE SUPPLY CHAIN
Indica marked the beginning of Telco's drive into
India's auto market as an integrator with a multi-product portfolio.
Analysts felt that the competencies that Telco had grown in the process of
marketing Indica would be the core around which it would build its future
car business. Analysts also felt that Tata would use the supply chain that
fed the Indica to feed a whole range of Telco cars of the future.
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D.C. Anand, CEO, Anand Group, said, “Telco's capacity
will be tested by how many new models it can come up with--and how soon.
Is Telco in a position to do so? Four years ago, I would have said no.
Today, I am not going to underestimate their capacity. They have
demonstrated it.”
Business Today[5] wrote, “Leveraging the low-cost supply chain that it has
built, Telco will launch a series of other cars--priced both below and
above the Indica, straddling the entire spectrum--each of which will be
progressively easier to integrate.” The supply infrastructure would
become economical as the volume of the business that Telco offered its
vendors increased. |
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The volume of business would increase with a larger
number of cars. The learning that it was extracting from the Indica
supply chain would also be available to the company as it moved into
other products.
There seemed to be a distinct opportunity for a smaller, cheaper car,
positioned as an entry-level for the first-time buyer. Analysts felt
that Telco's supply chain management would become the pivot around which
it could assemble its passenger-car business.
QUESTIONS FOR DISCUSSION
[5]
January 7, 1999.
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