It might have driven through Indian roads in 1991 but as the Tata Sierra charts its comeback over three decades later, the dice seem loaded against it.
Starting at a niche 17% share of the total Indian passenger vehicle market in fiscal year 2016, the SUV (sports utility vehicle) segment has grown aggressively to account for well over 50% of total PV sales, posting high double-digit growth consistently as opposed to the overall market’s modest single-digit growth. By pricing their offerings close to that of a premium hatchback or base sedan (that usually begin at `7 lakh), players like Maruti Brezza, Tata Punch and Kia Sonnet have brought SUVs within the reach of a wide customer segment, including first-time buyers.
Will Tata Sierra follow the tried and tested trajectory of competitors? After all, it failed to take off in its first attempt in the early 90s. Or will it fight on its own terms?
Unlike others
Vivek Srivatsa, chief commercial officer, Tata Passenger Electric Mobility, says this is a launch unlike most others from the automaker. “In the auto market, you usually look at a brand that is successful and study the formula before creating a ‘me-too;’ product. We’ve changed that — the plan is to first bring back the brand, and then make a product around it,” he says.
For the launch, the automaker has lined up a series of collaborations with the likes of Tata Starbucks, Gully Labs and Delhi Watch Company, to embed the brand into social culture among Gen Z and millennial cohorts.
Srivatsa says when it first hit the roads in 1991, the brand was ahead of its time. With a price tag of 5 lakh upward, the Tata Sierra was the most expensive offering in the passenger car segment in 1991. Available at 1-1.5 lakh, the Maruti 800 was the first choice for most middle-class households that time. Pricing for the new model is yet to be announced, though analysts say it might be in the 12 lakh to 18 lakh range.
Ahead of its time is a nicer way of saying ‘we didn’t read the market well’, opines Ajimon Francis, MD India for Brand Finance. He adds that its missteps also work in its favour. After all, since the brand never really took off, the weight of legacy won’t be a deciding factor in its success. “Comparatively, the Tata Safari saw better sales and visibility,” Francis says.
The Tata brand could be a real differentiator for Sierra, says Francis. “In the last few years, Tata Motors has raised the bar with a slew of electric vehicle (EV) launches and by climbing up in volumes at an overall level,” he notes.
Beyond legacy
According to Shekhar Suman, co-founder of Brandshark, the latest Tata Motors’ launch is a step in the right direction, especially since it is not just about functionality but also about identity. “Tata already has a strong SUV lineup with Nexon, Harrier, Punch and the Curvv. So, the Sierra can’t just be another SUV. Its growth potential comes from emotional whitespace, not the functional one,” observes Suman.
Although a sizable number of consumers may remember the Sierra brand from the 1990s, Srivatsa is clear that the brand is not betting big on legacy or nostalgia alone. Design is a key component, considering consumers spend a lot more time on the road travelling or commuting. He adds that the new model will also offer a triple-screen layout, a first for a Tata model, aside from design and tech differentiation.
Today, Srivatsa says, Indian consumers are ready for a statement SUV vehicle like the Sierra considering that there is improved connectivity across the country and that road trips have become a norm of sorts across consumer groups. But he does agree that the SUV market is saturated. What gives the Sierra an edge is that it has differentiation in design and character within a category that is marked by “sameness, much like the white goods market,” he observes.
The brand has launched a new film emphasising that the Sierra is about an identity-driven lifestyle and is not a family crossover. Lifestyle and culture are core aspects for the brand’s launch. Suman reckons that the Sierra can build a familiar resonance that is not as polarising as the Thar or as experimental as the Curvv.
Tata Motors is adopting a digital-first marketing strategy to build resonance with Gen Z and millennial consumers. It also plans to leverage the IPL and WPL next year to build reach. If its marketing strategy plays out well, experts agree that it could possibly turn Sierra’s legacy into a bonus and not a challenge.