'Ace' card works for Tata, cargo 3-wheeler sales dip
The Financial Express — February 24, 2006

The worst fears of cargo three-wheeler makers in the country seem to have come true. Tata Ace, the minitruck launched by Tata Motors, has dented the sales of three wheelers with a mass of over 1 tonne. The sales of three wheelers in this category has gone down by 9% to 29,604 units for the period April, 2005-January 2006, refelcting a shift in buyers towards the Ace. Tata Ace was launched in May 2005. Tata Motors' LCV sales in the sub 3.5 tonne category, in which Ace falls, has more than doubled to 36,337 units in the same period, up 117%.

In fact Tata Ace has been launched only in the the four southern states and Maharashtra, so far and does not even have a pan-Indian presence. During the launch of Ace, Tata Motors officials had clearly said that the company was positioning the vehicle to 'fill the gap between three wheelers and two tonne pick up trucks, for cargo movement'. True to their belief, the Ace has taken its toll on low end light commercial vehicles, as well. The other LCV makers in the same sub-3.5 tonne mass segment, like Mahindra & Mahindra (M&M) and Force Motors have also witnessed a drop in sales after the launch of Ace in May last year.

Apart from its unique positioning, between a three wheeler and a LCV, the good looks and attractive pricing, at Rs 2.25-2.35 lakh, also add to the benefits of the Ace. To meet the growing demand, Tata Motors has already announced doubling of Ace capacity from 30,000 units per annum to 60,000 units. " We have been getting enquiries from a lot of countries abroad for the Ace. We are looking at the possibility of producing Ace in overseas markets", Ravi Kant, managing director, Tata Motors had said earlier in a press conference.