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What drives the Tata Motors strategy?
Govindkrishna Seshan & Bijoy Kumar Y | January 23, 2008 With the Nano on one end and the Land Rover-Jaguar deal at the other, is Tata Motors [Get Quote] trying to do too much, in too little time? Last fortnight, when Tata Group chairman Ratan Tata unveiled the company's Rs 1-lakh car, it was in a loud, crowded, chaotic gathering, prompting Financial Times to comment that the event was a possible indicator of what could happen on Indian roads, when the car is launched later this year. On his part, Tata would prefer to not be distracted by such remarks, as the development of the Nano has seen opposition from various quarters; politicians, environmentalists, competitors.
"The toughest part was continuing to believe that we could do it," Tata told journalists covering the Auto Expo in New Delhi, where he unveiled the lowest-priced car in the world. He added that "a promise is a promise", hinting at the ability of his company to deliver even in the face of brutal scepticism. But Nano is just one reason why the world is looking at Tata Motors, the Tata Group's automobile venture. The other big event is the company's likely association with American auto maker Ford's premium brands Land Rover and Jaguar.
Here, Tata is competing with a group of private equity players including one with Jacques Nasser, former Ford CEO, at the helm. Recent reports, though, indicate that Tata is the frontrunner. Between launching the Rs 1-lakh Nano and the Land Rover and Jaguar that are priced anywhere between 30 and 100 times more, Tata Motors is aiming for a presence across the spectrum. At one level Tata might well compete with two-wheeler ...