TATA Motors – Potential Value in India’s Emerging Markets

tata_home_r2_c2Tata Motors is an Indian Car Manufacturer who recently came out with Nano Car that cost less than $2500. A lot has been written about its design innovation, supply chain, and its execution.

One of the key here is that Tata Motors created a whole new market for itself. Until now the cheapest car available to Indian population was at $5000. While Detroit was busy with making incremental changes and coming up with so called innovative financial schemes, TATA Motors was busy listening to its customer base. It listened and executed to come out with a car that its customer will buy.

Many in Western world have critiqued the no frills bare bone Nano car saying that it could have been designed in west, but would be difficult to sell the developed economies. But the point being missed here is listening to its customer base and designing accordingly. With its huge distribution network, design powerhouse, and existing infrastructure, Detroit Big Three missed the bus not only in US, but other emerging markets as well. Detroit missed riding the wave of small fuel efficient cars. continue reading rest of the article….

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