Tata Motors pulls the plug on ageing Indica, Indigo models

NEW DELHI: Tata Motors would soon scrap its first passenger car platform Indica and Indigo sedan, two decades after it helped the company launch into the booming car market, as the models have lost appeal with consumers being lured by trendier ones sold by its rivals.

A Tata Motors dealer said, “The company has stopped the production of both the cars and it is now supplying the last few cars.”

Tata Motors spokesperson confirmed the development.

“With the changing market dynamics and the evolution of Tata Motors design language towards impactful design, we have decided to phase out the Indica and the Indigo eCS, a common phenomenon in a product lifecycle,” he said.

The sales and production number released by Society of Indian Automobile Manufacturers (SIAM) suggest that the sales of the two models were steadily declining.

While Tata Motors sold 1,87,321 units for the financial year ending March 31, 2018 posting a growth of 22%, compared to 1,53,151 units in the same period last year. The growth was primarily achieved on the back of newly-launched Nexon, Hexa, and strong sales of the compact hatchback Tiago. However, the sales of old products such as Indigo and Indica were below par.

According to SIAM data, the carmaker sold 2,583 units of Indica and 1,756 units of Indigo in the fiscal year 2018. The company didn’t report production and sales for the two car models in April 2018.

“Launched in 1998, for the past 2 decades, the Tata Indica – India’s first, fully indigenous passenger car – has been the frontrunner of Tata Motors’ PV line-up. Establishing itself as a ‘coming of age car’ for India, the Indica has been a much loved and admired brand. The Indica was followed by the Indigo launch in 2002. The Indigo too was received well in the PV market and has been much appreciated for its compact design and spacious interiors,” the spokesperson for the company added.

“We will continue to serve our extended family of Indica and Indigo customers by providing them the necessary service support,” he added.

The car project was close to the then chairman Ratan Tata’s scheme of things, where he made the famous statement on the physical attributes of the Indica, under development.

He had revealed then when the car was under development that the car will have the dimensions of a Maruti Zen, the cabin size of an Ambassador and the fuel efficiency of a Maruti 800. He kept his word, and the car when it was launched was one of the bestsellers garnering over 1,00,000 bookings.

Kaushik Madhvan, Director - Automotive & Transportation, MENASA at Frost & Sullivan said, "Not really surprised. They were really old models and their popularity has reduced significantly over the past years. There are newer models with better features, safety and performance. In my opinion, it was just a matter of time before these were phased out."

Industry experts believe that the carmaker has lined up new product launches this year and next year.