Due to the global financial crisis in 2000 many companies in India suffered huge losses including Tata Motors. In the year 2000 Tata Motors suffered a loss of 500 crore rupees but Tata Motors was already in the number one position with sixty percent market share in the Indian commercial vehicle segment. In order to protect their position in the future, they need a new commercial vehicle to bring Tata models from losses to profits so in this process girish wagh a mechanical engineer working in this company studied the commercial vehicle market for almost three years and identified the problems in it. Solving and designing a new vehicle the same Tata Ace Chennai plant but this one carrier is not only keeping Tata Motors in the number one position in the commercial vehicle segment but also creating a new revolution in the last my delivery market in India and doing automobile business many companies are copying Tata Ace and making their vehicles and it has grown to the level of designing
But the point here is that when Girish Tata originally designed it he solved the problems in the market so how much interest did Ratan Tata show in this project after Tata Motors suffered heavy losses in the year 2000 while leading the commercial vehicle business in this company Ravikant took a decision that is to make Tata Motors in the number one position again in the future he should know the problems in the market and make Tata Motors vehicles in the future to meet them. To research the market and find out the future needs he formed four teams in which each team works in each segment like team One Intermediate Commercial Vehicles team two Light Commercial Vehicles Team three medium commercial vehicles and Team Forten Market Ravikant Girish Ward is a 29 years old mechanical engineer has been appointed but what Girish Wagh has to do is to study the last my delivery market in India and find out the opportunities for Tata Motors company to do business there it is transported by each vehicle in one stage example to transport between two countries ships and flights to transport.
Between two states products are delivered to your home by vehicle This is called last mile delivery but in 2001 Mahindra and Mahindra Bajaj Auto made a good name in the last mile delivery market in India with their three wheeler vehicle so Girish Waugh is in India to fine out the opportunities of Tata Motors in this particular segment many auto drivers who are doing last mile delivery through autos back to many places have talked to van drivers and truck drivers and understood many problems out of which I will give you two examples. Listen carefully talked to a driver who drives a three wheeler temple called Bajaj Mini Door what he said is that the vehicle he is driving is girish told him that there is no tribulation no load bearing no safety no comfort if the road is not right there is a high chance of hitting this tempo so he wants to buy a four wheeler vehicle but because it costs more than 5 lakhs he cannot afford it so this is one and the second. Girish spoke to a driver who drives a Tata Four Not Seven truck in Ahmedabad. What he said is that because of these big vehicles.
They are not able to go to the market and deliver the goods to small towns. The goods are being delivered to the customer So because of this, those who are driving medium size vehicles like Tata Four Notes are losing a lot but if this Tata is there then their problems will be solved Girish told him but here is what you need to notice that in what you have read so far I have not said anything about Tata Ace I just identified the problem in the market Girish garu I have only explained what was done but now most of you will have already understood how to make Tata Ace because you have clearly understood what is the problem in the market but here let me tell you one important thing and you need to understand clearly what is the problem Cost If you understand clearly what is the problem then 50 percent solution will be found then the remaining 50 percent will be in making the product Do you understand So same to Girish to solve the problems in the auto driver and tractor delivery market the vehicle there should bear more load Roads with potholes It should be stable without overturning
It should be of complex size so that it can go easily into small alleys it should give more mileage and its price should be less than 5 lakhs so if all these are implemented in one vehicle it is the same as Tata Ace but Tata Ace has not come into the market as easily as said because as drivers say it is a stable vehicle design that can bear more load in complex size. It is not very difficult to do but the biggest challenge before Tata Motors is to make a vehicle that can bear more mileage and more load within five lakh but finally taking this project Giri Swag and Ravikant went to the then chairman of Tata group Ratan Tata for approval and this project After listening completely they supported a lot to bring it on Indian roads but the logic behind Ratan Tata supporting the project so much is that the logistics network in India at the time of 2001 is a point which means that many companies doing logistics business are following husband spoke model what do you mean by point model and husband model Point to point model means that a single vehicle is used to deliver the product to all the stores in an area.
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