Tata goes for value pitch

The new Australian distributor of India’s Tata vehicles is looking to gain a foothold in the market by pitching its utilities as higher quality and safer than Chinese utes at a lower cost than the Japanese, European and American opposition.

Fusion Automotive, a subsidiary of the Walkinshaw Group, will officially launch its Tata affiliation on Friday at the National 4x4 and Camping Show in Melbourne, where it will confirm the Xenon ute range for release in October.

But speaking to motoring.com.au in advance of the reveal, Fusion Automotive Managing Director, Darren Bowler outlined the proposition the company will put to potential buyers.

“We want to deliver a product that is good quality, good value and is safe. There is a market here for a unique commercial vehicle that is tough, and there is no tougher place in the world to build a car and test car than in India.”

“For us that’s appealing for Australia, because Australians in a light commercial vehicle want a car that’s tough, they want a car that’s durable and something they can use as a workhorse but also tow the boat, to the jet-skis or also put the motorbikes in the back.

“So there is that opportunity there for us to grow in that market, really focus on that and deliver quality and value.”

While somewhat veiled, Bowler obviously sees the Chinese Great Wall Motors, distributed in Australia by Ateco Automotive as a clear target for Tata.

GWM scored strong and rapid sales success in Australia with its V200 and V240 utes, but have also received bad publicity for poor quality and safety scores. While Ateco hasn’t handed the cars out to the press for testing, the few that have been sourced by the motoring media for assessment have been savaged.

This year GWM sales have fallen more than 50 per cent, although Ateco is blaming that on an ageing model line-up.

Bowler confirmed that extensive local testing of Tata models was taking place to make sure they were suitable for the Australian environment. This process is being done utilising the affiliated in-house engineering division, Walkinshaw Automotive Group.

While Bowler wouldn’t say it directly, it is clear that Walkinshaw group’s move to create Fusion and link with Tata is at least in part an effort to reduce reliance on the Holden Special Vehicles hot-rod Commodore division.

Large vehicle sales are diminishing and the traditional rear-wheel drive V8 appears to have only a few years of life left in it.

As well as HSV and HSV Individual, the Walkinshaw group includes motorsport, tuning, engineering and golf equipment distribution divisions.

“When we looked at Australian market and the opportunities that were there we thought there was an opportunity to do more than just what we do,” Bowler explained. “There was an opportunity to expand our business as a group and look at what other opportunities exist.

“India is the future in many ways. A lot of people have turned to India as the next big thing beyond China.”

Bowler said Fusion would be Tata exclusive, but is negotiating to expand its distribution rights beyond Australia into New Zealand and potentially into other markets in the region
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He also confirmed the Walkinshaw group would consider pitching for the rights to distribute other car brands in Australia and the region.

“The group is very open to other opportunities,” he said.

The Xenon utes will be the sole Tata offerings in the market for at least 12 months, with heavy trucks and medium trucks next on the agenda within two years. Tata buses and passenger cars are some years away from local sale.

As has been previously reported, the tiny Nano is off the agenda, while more orthodox Tata models have been ruled out because they aren’t guaranteed a four-star ANCAP safety rating.

“For us four stars is what we look at -- we don’t want to do anything less than four stars in a passenger car.”

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