How Tata & Mahindra Redefined Themselves as Car Brands

How Tata & Mahindra Redefined Themselves as Car Brands is the most inspiring Analytics report on the Automotive Industry.

How Best to manage brands for profit on every sale of the vehicle? It comes from our analysis: willingness to pay more for your brands, even when competitors are cheaper. So, what is the reason that customers are willing to pay more? Because of the trust and bond you created over time in the customer’s minds. Now the question comes, how to win the customer’s trust?

With the growing purchasing power of Indian Buyers and their willingness to pay for premium cars like the Harrier and XUV platform, the car segment moved into a Market reset.

Tata Motors and Mahindra were able to achieve (1) a point of difference simultaneously on
performance and Technology, and a point-of-parity on perceived luxury with respect to luxury cars, and (2) a point-of-difference on perceived luxury and a point-of-parity on performance and Technology with respect to performance cars.

Tata Motors and Mahindra are now ruling the roost among car buyers in India. Once, Tata vehicles were used in the Taxi industry, such as the Tata Indica or Sumo. Exceptionally, the Tata Safari and Tata Sierra had a different customer base. Now, Tata cars and SUVs are the favourite choice to drive.

The goal of this study is to learn how the Tata and Mahindra brands created and dominated new subcategories and why competitors stood by and watched. Another prospect of this study is how OEMs such as Volkswagen, Renault, Nissan, and Skoda can adapt their brand strategy to win customers’ hearts and minds.

In 2022, Mahindra made a big bet on Electric car technology by launching the XUV 400 EV. In 2024, another big bet on another electric car for Indian customers.

Tata Motors expanded the EV technology to other models, such as the Safari, Harrier, and Punch, after launching the Tigor EV in 2017. Also, the Harrier enhanced Tata’s position as the most innovative brand in India.

Mahindra and Tata observed that car owners in India were becoming more mature and affluent and challenged their organizations to “create a luxury car to challenge the very best ”—a challenge that led to the XUV, Safari, Harrier, Altroz, Curvv, and other models.

Mahindra and Tata integrated innovative features and improvements to make their USP to meet customer expectations.

Tata and Mahindra provided not only functional benefits but also the self-expressive benefit of doing something about the energy and global warming crises.

In 2024, over half of the Mahindra and Tata buyers in our customer survey expressed that the main reason they purchased the car and SUV was that “ it makes a statement about me”.

Brand Position: Tata Motors and Mahindra

Both companies changed the promise of their brand from Economy to premium luxury car. Tata and Mahindra understood that the brand is not just a company communicating or telling buyers or the market what it is. But what one customer is speaking to others about these brands.

Indian Buyers want to feel positive about both Brand experience, such as Brand Smell, Social, Feel, Engagement, Love, Think, and Emotion. It is not the same as we consider Volkswagen or Nissan on the scale.

It’s not only product performance or attributes. Brand is your friend. To win a friend’s trust, you must earn it; if the customer considers you a friend, you are already trustworthy. You are not only aware of the brand, but you also know how it fits into your world.

Just saying: Brand positioning does not deliver the expected results, but Experiential brand positioning works and delivers exceptional results.

Similarly, only the Brand promise line does not impact the buyers, but the Experiential brand Value Promise builds trust.

Mahindra uses Ingredient branding in the promotion; however, Tata uses Ingredient branding indirectly to win the buyers’ trust.

Key Highlights of the report:

What is the brand for Indian buyers
How to build the brand
Relationship between Product, Brand, and Customers
Design the brand strategy to win the market in a short time
Customer journey of various customer segments
Post-merger Brand Strategy, case study of MAN-Scania merger
What are the different brand attributes, and how do they impact buying decisions
Identifying and developing brand plans
Designing and implementing brand marketing programs
Measuring and interpreting brand performance
Growing and sustaining brand equity