Will Tata Nano be Successful in USA?

Tata Nano is the recent craze of India’s auto market. India is a price sensitive market where price plays a big factor when it comes to become successful in any business. Tata Nano costs just $2000 (about 1 lank Rupees) and it seems that Tata Motors could grasp a big chunk of market share in Indian car market. It is also considered to be a threat for two wheelers in Indian market mainly because of Nano’s price tag.

So far, Indian market was considered to be a price sensitive, but due to economic recession, it seems that American consumers have also become very conscious about price and they are highly attracted towards the products which will cost them a lot less than a typical one, but would offer standard features. Though Tata Nano is a low-cost passenger car, it looks like a gorgeous one, and its periphery design would not let you believe that the car is available for such a low price.

Tata Motors can take smart move by focusing on American market, besides its large domestic market. For American market, Tata could offer an improved version of Tata Nano, offering some improved features with a slightly high price tag. To be honest, this is a big chance for Tata have a bite on American car market.

Tata Wants to Double the Revenue of Software Industry in 3-4 Years in India

You know that global economic recession is getting aggravated day by day and it seems that the worst days have not come yet. Due to slowing economy, India’s software outsourcing industry is suffering too as the American and European companies are cutting their expenditure on international technology. That is why, Tata Consultancy Services Ltd. has decided to focus more on Indian market, and thus, gradually cutting the dependence on American and European market.

Tata Consultancy Services Ltd. is the country’s largest software export company in terms of yearly revenue. Now, they want to double their domestic revenue in the next 3 to 4 years. Well, I think, it would be a good initiative to focus more on Indian market, but I am not sure if the company would find as much works available in Indian market as it used to do in the American and European markets. Moreover, the marginal revenue of Indian market would not be as profitable as of European and American markets.

Related article:

The Wall Street Journal

Tata Motors shuts down its Jamshedpur plant

Tata Motors Limited (BOM: 500570), which previously made headlines for its high profile acquisitions, just become another victim of global credit crunch. Recently, the company declared to shutdown its Jamshedpur plant for five days starting from November 25, 2008. This is the second shutdown in this month in order to adjust the production with declining sales orders. Earlier, it was shut down for three days from November 6 to November 8, 2008. However, it was an unofficial five day shut down. Tata Motors even reduced its production targets in October and put 3,000 temporary workers on leave. More than 70% of the companies that are dependent on Tata were affected from this shutdown. Already, its Pune and Lucknow plants are shutdown starting from November 22 to November 27, 2008. The company forced its workers to take leave without pay. Bachcha Singh, spokesperson of Telco Workers Union said:

"We are with the company. We have suggested to the company management that they adopt measures to cut costs to meet the challenge of global meltdown,"

On November 6, 2008, Ratan Tata, head of the 62.5 billion Tata Group conglomerate, forwarded an e-mail to the heads of all the 98 companies. In the email, he advised to stop all kinds of merger and take over procedures and adopt strict cost cutting measures to keep the companies operational. Tata borrowed heavily from investors and banks to fund its take over plans and now it is under huge debt. Last year, the company produced 1,25,000 vehicles which has come down to 50,000 due to world wide economic crisis.

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The Hindu

Hindustan Times

South Asia Fair