Tata`s successful compact sedan Zest gives its rivals sleepless nights ; waiting period extends upto 6 months
After years of no new car launches and declining sales, Indian car major Tata Motors finally launched the new Zest compact sedan in India, tasting instant success and growing demand. The new Tata Zest is the company’s first product from the newly conceived ‘Horizonnext’ strategy. While other new car models that form a part of this strategy are in the pipeline, Tata Zest has put the Indian car manufacturer back in the game. However, Tata Motors is not able to cope up with the increasing demand for its latest launch in the Indian car market.
The Tata Zest compact sedan is the latest entrant in the highly popular Indian compact sedan segment and has received very good response from the Indian car buyers, right from the car’s launch day. The demand for the very capable Tata Zest is on the rise and this is resulting in the lengthy waiting period. The Zest’s current waiting period has now extended to up to 6 months for some of the variants.
The increase in waiting period for the new Tata Zest compact sedan is also the result of supply limitation from some of the car maker’s vendors as well as Tata’s insufficient production capacity for the car. The president of the passenger vehicles business unit at Tata Motors, Mr. Mayank Pareek told the media on the sidelines of the car maker’s quarterly market performance press conference held in Mumbai, that the company is facing production constraints, and that the supply is very less as compared to the car’s demand. However, the Indian car maker has already started working on this issue and is trying to increase the production capacity for the new compact sedan.
Commenting on the Tata Zest’s market performance and demands, Pareek added by saying that more than 10,000 units of the new Tata Zest have been sold in India since the car’s official market launch in August, 2014. Tata Motors is also witnessing greater demand for the petrol variants of the Zest compact sedan. When talking on the company’s market performance on the whole, Pareek revealed that Tata Motors has witnessed a 6.5 percent growth in the company’s combined revenue. However, the Indian car major has also suffered a 7.1 percent decrease in its profits after tax deductions in the July to September quarter this year as compared to the corresponding quarter in 2013.
Tata Motors has been suffering from plummeting sales in the domestic market and declining market share. The homegrown car maker has thus, set to revive its sales and grab some market share by launching new cars models. Another upcoming new Tata car, namely the Bolt which is based on the Zest was supposed to launch within this year. However, the Bolt’s launch has now been postponed to early 2015.