Strategy on Tata Motors

The acquire of the painter and Land Rover brands catapulted Tata into a assorted league, while also expanding its global footprint dramatically. Jaguar and Land Rover are highly train vehicles, well-engineered and superbly designed, handleing to the upper middle-class motorists virtually the world. While Tata Motors has been running its UK subsidiary at an arms length, it could eventually benefit from its engineering, design and marketing expertise. However, the benefits have non been yet spread to India, and Tatas range still relies on its pre-JLR simple machines.Prime among these is the world fs cheapest four-wheeler, the Nano urban subcompact. It was originally intended to sell for Rs1 lakh (Rs100,000), which at the time was equal to well-nigh US$2,000. The company had ambitious plans for the Nano, including exporting it to western sandwich Europe and North America. In the event, the Nano s toll had to be increased, and it straightway starts at Rs1. 45 lakh with better -equipped and more than sophisticated models running up to double that amount.Given the depreciation of the rupee over the past 18 months, the cheapest Nano can still be purchased for under US$2,400. At the time, it seemed that cheap vehicles were what India and other developing markets wanted. nearly competitors scrambled to emulate the Nano, while sets of second-hand vehicles plunged. However, the strategy now seems to be a mistake. The simple machine is still out-of-the-way(prenominal) more expensive than a motorcycle or a moped, while those who can afford a car are highly image-conscious. They don t want to be seen in a car that is known to be the world s cheapest and looks the part.This line of work has become more acute as Indias car market has entered a period of stagnation, pushing bring down sales. So Tata is fine-tuning its Nano strategy. The new Nano impart be more elegant, will have more desirable features and add-ons and will be given a higher price tag. Tata i s planning to market it to a different host of motorists, including young urban professionals. A new aggroup of highly educated, successful twenty-something has emerged in Indian cities, and they may find the Nano an attractive first vehicle.