Virus outbreak forces car name change

Sometimes a brand product name can fall foul of external forces. When this leads to a brand being linked to something unarguably negative, the manufacturers must make the decision to either rescind its name, or battle through a potentially negative media, consumer and investor backlash.

This is the problem presenting itself to Indian carmakers Tata Motors, which has recently developed a new model of car. Originally called Zica, the name was an abbreviation of ‘zippy car’. However, with identical pronunciation to the name of infectious disease Zika, Tata Motors has been placed in a compromising position.

Zika is a mosquito-borne virus which has been linked by some scientists to the condition microcephaly – repeatedly, babies in Brazil are being born with unusually small heads and brain impairment. With the pace of virus spread currently looking unlikely to slow, measures and precautions are being enforced by international health bodies.

Indeed, on 1 February, so worrying had the spread of Zika virus become that it was declared a public health emergency by Margaret Chan, director of the World Health Organisation (WHO). Speaking at a meeting of the WHO’s international health regulations emergency committee, Chan described Zika as, “An extraordinary event and a public health threat to other parts of the world”.

While the Zica car model had not been unveiled to the wider automobile market at this point, Tata Motors were unable to withdraw the suggested name in time for its unveiling at the AutoExpo in New Delhi, on 3 February.

However, in an effort to curb negative attention from its stakeholders, Tata Motors’ public relations strategy involved asking members of the wider public for suggestions on what the model should be renamed to. As a result, the model will now be known as Tiago – a popular Portuguese boys name.

Regardless of any potential issues with the car model’s original name, unveiling the new Tiago model at the end of March is intended to revitalise the declining Indian family vehicle market. With research suggesting that brands experience a 5-20% drop in sales following a rebrand, Tata Motors must be sure any positive outcomes outweigh the short-term negative consequences.

Whether the Zambia Institute of Chartered Accountants will also undergo a name change remains to be seen.