Tata bets big on Zica for revival

Tata Motors Ltd will be reborn this month with a curvaceous hatchback far removed from the low-cost, boxy models often associated with taxis, kicking off an image-centred strategy for a brand with newly global aspirations.

The Zica will be followed over the next three years by more hatchbacks and sport utility vehicles, plugging gaps in Tata’s line-up, said chief engineer Tim Leverton.

Meanwhile, Tata will adopt a modular production approach — where components are common across models — to cut costs and raise quality, he said.

India’s fifth-biggest automaker — owner of Jaguar Land Rover Ltd (JLR), a luxury brand patronised by the British monarchy — has struggled to dispel perceptions of cheapness since releasing the Nano seven years ago for under $3,000.

Few new models in the intervening years, materials-related quality issues and the need for frequent servicing has seen domestic passenger car sales and market share roughly halve in the past two business years, with profit held up mainly by JLR.

Tata’s response begins with the Zica. The car was designed by an international team resulting in a more modern look, built with higher-quality materials and equipped with up-to-date features such as an infotainment system — all endorsed by world soccer player of the year Lionel Messi.

The Zica will compete with vehicles in a similar class from Maruti Suzuki India Ltd and Hyundai Motor Co where prices start at Rs 4 lakh.

Tata is looking beyond primarily practical, fuel-efficient workhorses as India’s fast-growing, brand-conscious middle class increasingly seek vehicles that reflect their tastes.