ICB Scoop: Tata Motors Annual Maintenance Contracts for Indica, Indigo eCS, Vista and Manza cars

Well, here we go again. Team ICB’s roving eye in the sky, EarthFusion, has accessed confidential documents pertaining to Tata Motors’ strategy to boost cars sales. Tata Motors, which has been hit by a big drop in car sales over the past 12 months is doing everything it can to boost sales. From discounts to buy back options, from mild facelifts to big refreshes, Tata Motors’ wants to claw back marketshare from rivals such as Mahindra and Toyota. From being Hyundai’s challenger for second place in the Indian car market, Tata Motors now finds itself in fifth place, thanks to the steady slippage in sales.

Adversity breeds opportunity and today, we have with us a brand new strategy from Tata Motors. This strategy involves an industry leading approach in the form of the Tata Motors Annual Maintenance Contract for cars such as the Tata Indica, Vista, Indigo eCS and the Manza. Tata Motors’ latest AMC will ensure that Tata cars come with the lowest maintenance and running costs, stuff that will soon be advertised heavily across most media outlets to convey Tata cars’ outstanding value proposition. Traditionally, Tata cars have been known as cars that deliver high value for money.

What is an annual maintenance contract?

An Annual Maintenance Contract is essentially a scheme which allows car buyers to buy service and maintenance for their cars at a fixed annual cost. The AMC assures car buyers of fixed maintenance and service costs over the first few years of car ownership. Chevrolet pioneered this scheme in India with the Chevrolet promise while Tata Motors joined the AMC bandwagon with a highly affordable offer for the Nano hatchback. The upcoming Honda Brio Amaze is expected to come with an annual maintenance package.

The Annual Maintenance Contracts are aimed at reinforcing Tata cars’ traditional strength of low running and maintenance costs. Here are the highlights of this plan,

* Tata Motors will soon offer Annual Maintenance Contracts for the Indica, Indigo eCS, Vista and Manza cars.

* There will be two plans: Gold and Silver.

* The silver plan is aimed at the taxi/commercial segment while the gold plan is aimed at family car buyers.

* The plan will cover servicing costs including labour and consumables.

* Tata’s plan will also cover items under the wear and tear category, a segment that’s usually charged by most other car makers.

* The maintenance costs promised by Tata Motors is industry leading with the AMC for personal cars as low as 33 Paise/Km while that for taxis is priced at 26 Paise/Km.

* The AMC can either be paid through a single payment or through monthly EMIs.

* Tata Motors could also offer the AMC included in the price of the cars.

* Notably, the AMC from Tata Motors is the least priced scheme in India, bettering every other offer that other car makers offer in terms of annual maintenance contracts.

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