In a bid to boost sagging sales of its crossover Aria, Tata Motors will launch a cheaper version of the car this month. The new two-wheel-drive (2WD) version of the Aria is expected to be priced at around R10-11 lakh, according to sources in the dealer network. Currently, the 2.2-litre DICOR engine powered four-wheel drive (4WD) Aria is priced between R13.54 lakh and R16.20 lakh ex-showroom in Mumbai.

Recently Tata Motors has said the company will launch a two-wheel drive version of its Aria this financial year. According to Society of Indian Automobile Manufacturers (Siam) figures, Tata Motors? domestic sales of Aria and Xenon for April and May 2011-12 together stood at 343 units. The Aria was launched in October last year.

?Sales are less than 100 units per month for Aria at the moment, which is down from 300 units per month recorded earlier. The pricing and positioning of the Aria is working against it. We expect the cheaper version, a two-wheel drive, to scale up sales,” said a top Tata Motors dealer.

A spokesperson from Tata Motors said, ?We do not share brand-wise sales figures. The Tata Aria?s sales are progressing according to plans. We do not provide any guidance on future product development initiatives.?

According to JD Power Asia Pacific, Tata Motors sold over 900 units of the Aria in the first five months (through May).

?The Aria?s high-price tag is limiting its volume potential, and the model is performing below expectations. A 2WD may give customers another choice, but the right pricing will be the key to improving sales,? said Ammar Master, senior market analyst, JD Power Asia Pacific.

Adds VG Ramakrishnan, senior director (transportation & logistics), South Asia, Middle-East and North Africa, Frost & Sullivan, ?We expect the Aria 2WD drive to kick-start the real competition in the utility vehicles market.?

The Aria competes with the Toyota Innova and Mahindra & Mahindra (M&M) Xylo. At the time of launch last year, Tata Motors had positioned Aria as India?s first crossover with a premium touch, but soon had to re-think its strategy, with the marketing campaign not picking up as expected. The company now runs a new marketing campaign highlighting the 36 features offered in the Aria.

It is this unclear positioning of the model that the industry experts feel is the reason for a subdued response to the product.

During 2010-11, Tata Motors witnessed a growth of 26.2% in its utility vehicle (UV) sales to 42,277 units. The company?s market share in UV improved to 13.1% in 2010-11 from 12.4% in 2009-10.

The demand of UVs in the country is likely to slow down due to the increase in fuel prices. Diesel prices have been hiked by R3 per litre by the government recently. The UV market is expected to post a growth of around 9% this year.

In 2011, the total sales of sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs) are expected to be 2,66,000 units and 88,000 units, respectively. Last year, the UV market grew by 12%.