With NANO at one end and JAGUAR & LAND ROVER at other end, TATA is surely in the business. Realizing the promise of bringing car in range of one lakh and connecting JAGUAR & LAND ROVER to India somewhere addresses the potential of India to this world. Question to be asked is – Are TATA’s capable enough to manage such high profile brands. Specially knowing that they are not experienced enough in dealing such high profile brands, they only have one good going SUV – Safari back home. One more challenge for TATA’s will be to go on with such vast portfolio of brands. It should never be forgotten that to keep Land Rover and Jaguar at the same place where they are will be next big thing TATA’s have to think about. One important thing which somewhere is lost in this extravaganza is that both these brands were not doing so good when they were taken by TATA’s. But TATA’s potential can never be questioned if we were to believe their rapo. With all the three players in the race of going after two brands, staff of Jaguar and Land Rover choose TATA over others. Keeping their beliefs Ratan Tata has announced not to shift manufacturing facility to India. Surely, Ratan Tata has all good guns in the beginning. Both his recent projects are fetching public to brand TATA like never before. If roads leading to Pragati Maidan in Delhi during trade fare were jam packed coz of NANO than other business news fight hard to find space when Land Rover and Jaguar story filled all business editions of newspapers. With this hype at both extreme ends, TATA must have multiply its visibility. Among all this hype at roads, thinkers inside TATA must be working out the projections and combinations they need to frame to get return on investment. The real game is yet to begin as non of the projects are open to public for voting by showing as NANO is yet to come on roads and Jaguar & Land Rover story still need time to justify $2.3 billion. Whatever is done by now is easy part of the full work, the rest is still to come. All the best to TATA for their first part of game - when NANO will come on roads…
Saturday, May 3, 2008
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[i]Ajay your concerns/ doubts about how well TATA can manage these brands, seems to be quite obvious. But don't you see all this as one of the biggest strategic move in the Indian Automobile industry? I feel, Ratan's think tank have judged the local market well and in well advance.
Maruti, so far has been treated as the leader in India and that too because of the extreme popularity of its small cars. I have no doubts about the success of Maruti 800,1000 & Alto; keeping in mind the road conditions and the pocket of great Indian middle class. However, following its failure in making any huge impact in higher segment (much hyped sedan SX4 putting up a flop show), Maruti seems to have decided to sit with heads down and fingers crossed.
On the contrary Tata has been good with their SUV Safari & Sumo. And probably this success combined with rising disposable income and emerging flair among youth to try out fancies; might have motivated TATA to take over these high end brands.
With the launch of NANO and other few launches scheduled in near future, I feel its a rise of an alltogether new car segment. The economy car segment has really become more economic, with the earlier lowest price (of Maruti 800cc) falling down by a stunning margin of little more then 1 lakh.
Despite of Maruti 800 as the cheapest economy car available in the market (before the launch of NANO); how many people would have dreamt of buying it?
But after the commercial launch of NANO, the person who would be planning of buying a Pulsar 220 will be bound to give atleast one more thought to his/ her decision.
And the logic is simple, if the price of Pulsar 220cc is 80,000INR the cost of buying a Maruti 800cc is 2,25,000 INR; and the gap was too big. But TATA has really bridged the gap well! However in the long run success will depend on the credibility and durability the much discussed stuff, will offer![/i]
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