Can the Newly Born ‘RACEMO’ Really Challenge the Goliaths of the Industry?

Tata Motors become India’s first automotive manufacturer to join the exclusive group of auto brands that produce few of the most ravishing sports cars in the world. When India’s largest automotive manufacturer unveiled a two sitter coupe with 190PS power at the recently held Geneva Motor Show, it clearly made an unflinching statement. The sports car is likely to arrive in the market by FY 2018. Besides, RACEMO marks the introduction of the carmaker’s new subsidiary TAMO. The company also used the platform to showcase its special edition next-gen product line SUV NEXON and sedan TIGOR.

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RACEMO is a power packed concept vehicle that gives a glimpse into the company’s future ambitions in the particular segment. It is quite evident that car makers are now looking beyond offering just powerful engines and advanced transmission systems. Competition is fierce in this multitrillion dollar industry, which certainly does not guarantee survival even of the fittest. As it appears, the company is well aware of such harsh realities and with RACEMO it has tried to bring in a combination of speed, luxury and technology.  Powered by Microsoft, RACEMO represents a range of new age connected technologies such as geospatial and mapping, cloud computing, analytics and human-machine interface. Tesla is one of the pioneers of such concepts and has been constantly pushing for further application of connected technology in the automotive sector.

For long, Indian automakers have been categorised in the low and mid-end car manufacturer section, who are more focused in areas of fuel efficiency and durability since they cater to a highly price-sensitive consumer base. However, this has changed in the recent years with the ongoing escalation of the economy in the Indian sub-continent, creating more opportunities for the industry to expand its capabilities. Which is why Indian automakers are scaling up investments to increase their level of expertise in producing high-end cars. The auto industry in India is going through a transitional phase as companies such as Tata Motors and Mahindra and Mahindra move towards manufacturing cars that define power and luxury. In a move to strengthen its position in the global market, Tata Motors launched a range of models last year including compact sedan TIGOR, hatchback TIAGO and HEXA Tuff. In all its latest models, the company has made an attempt to combine power with efficiency, which is a strategy followed by several other automakers. It is giving more importance to feature such as styling, design, driver experience and technology. Therefore, RACEMO might probably help the company reinvent itself as a manufacturer that is fulfilling the modern vehicular requisitions. By the looks of it, the company is definitely not shying away from experimenting with modern manufacturing conduits, as it used few of the best industrial components in bringing up the RACEMO.

Last year, India recorded a higher GDP as compared to China, which is expected to grow at a similar pace over the next couple of years. Representing one of the fastest-growing economies in the world, many of the leading automakers around the globe consider India as a potential market. This, in turn, is raising the level of competition in the sector and urging native companies to ramp up their product quality to world class standards.

By Nikhil Kaitwade

With over 8 years of experience in market research and consulting industry, Nikhil has worked on more than 250 research assignments pertaining to chemicals, materials and energy sector. He has worked directly with about 35 reputed companies as lead consultant for plant expansion, product positioning, capacity factor analysis, new market/segment exploration, export market opportunity evaluation and sourcing strategies.

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