Tata Motors has lost considerable amount of market share to the likes of Maruti, Hyundai and Ford in India. However, to regain its lost regime, Tata Motors is working on a new small car. This new product from Tata Motors’ stable, called the Kite, is scheduled to be launch in 2015 and will be rolled out from the company’s Sanand plant in Gujarat.
The new Kite will be based on the company’s XO platform. The Kite is being developed to help Tata Motors capture the compact car segment which was once lead by its very own product, the Indica. It is expected that the Kite will use up majority of the company’s production capacity in the Sanand plant. Kite will be the second tallboy from Tata Motors after the Nano.
A huge amount of investment was made in the Sanand plant specifically for the assembly of Nano. However, the Nano failed to achieve numbers that the company had expected. Utilising the Sanand plant to its potential is another reason for Tata Motors to introduce a mass production car.
Tata Motors’ domestic sales have reduced drastically as people prefer newer cars. Tata has failed to offer something as successful as Indica. Company’s total sale of passenger vehicles clocked at 1,38,455 units in the FY14 versus that of the previous year when it sold 222,112 vehicles.