For any company to make a mark in the automobile industry, operating in foreign countries is imperative. Over the years, brands that have expanded their operations across the globe have reached the top. Tata Motors, one of the biggest brands in India, is looking in the same direction as it is hoping to transcend domestic boundaries. According to reports, the Indian auto maker is currently contemplating the development of a product line-up that will suit global markets. Sources claim that Tata Motors is willing to widen its horizon and reduce the level of dependency on its home market. Experts suggest that this approach by the auto maker clearly indicates the kind of risk a company takes if it depends on the home market. Sources close to this development have suggested that the firm would be looking to enter the South American market as opportunities present there are galore.
Karl Slym, Managing Director at Tata Motors, spoke about the same development in a recent interview. "We started the look into international markets a year ago. However, what happened this year in India is just the endorsement of the fact that you cannot be certain with all your eggs in one market because India has collapsed. We are interested in places like South America, we are studying places at the moment to make sure that we find a strong partner to help us enter those markets and not go in alone." he said. Adding further, he communicated that 2014 General Elections have proved to be a deterrent for bringing about a suitable change in the condition of Indian economy that is of a decent magnitude. This has triggered a response from the firm as it wants to balance out operations globally as well. Industry experts feel that this decision of Tata Motors comes on the back of the poor state the Indian automobile market is in. For about nine months, sales in the market declined continuously, leading to a number of evasive and strategical actions taken by auto makers.
Sources have claimed that Tata Motors is going to lay stress on product portfolio and develop it according to international standards. Slym talked about how the firm has finalised its product portfolio till the year 2020. In addition, he conveyed that Tata Motors is going to ensure that all vehicles manufactured under this portfolio are going to be suitable for global markets as well. "We have set up a strategy team to look into the international business. Where should we be, so that the new products that we are developing also become internationally capable, so that opens up new markets for us as well," he said. Although there was no disclosure of upcoming products and the markets they are being targeted towards, sources say that testing stage is under way in a number of countries. According to statistics, Tata Motors recorded sales of around 6 lakh units, which included 50000 vehicles that were exported.
Tata Motors, reports claim, is also going to be focused on the Nano hatchback, which has not performed according to expectations. In order to boost sales of the car, the firm is planning to market the product better by giving it an image makeover. Remarking on the Nano, its past and future, Slym said, "We have made some major changes to the vehicle in terms of interiors, we have done thousands of surveys to make sure to know what people would like to see in a Nano vehicle. Our (Nano) sales when it reached the lowest in middle of the year was about 1000, last month they were 3,500 so we are already seeing an uptake because we brought the right things to the market." Recently reports had surfaced about the launch of the diesel version of Nano, which is expected to make its way to showrooms soon. When asked about the same, Slym did say that there will be a diesel version of Nano but did not convey when the launch is likely to happen.
Reports suggest that Tata Motors is likely to introduce products in segments that currently the firm is not present in. Notably, there are many segments that are rising in terms of demand in India, such as compact Sports Utility Vehicles. Speaking on the same, he said, "SUVs is bifurcated into real SUVs or soft roaders. We don't have anything in the soft roader segment which is fast growing. It is important and it is key for us as well."
