Economically lower-class Indians felt empowered when they walked into a Tata Motors
(TML) showroom in Mumbai, India, on April 21, 2009, and reserved their first family
car for Rs 1,00,000 (US $2,000). In that month, India was under the spell of two
global influencing acts. The first was the holding of general elections in which the
world’s largest democracy was going to the polls. The second was the first day on
which the world’s cheapest car was available for purchase. No one had thought it possible to sell a car with all the required safety features and design for just under US
$2,000. Tata Motors, a company that changed the basic automotive business model,
had products ranging from the costliest—Jaguar and Land Rover—to the world’s
cheapest car, the Nano. Tata Motors is the only automobile company in the world
offering products ranging all the way from the smallest car to the luxury segment.
The success of Tata Motors lies in its international growth strategy (Appendix I),
“to consolidate position in the domestic market and expand international footprint
through development of new products by:
In 2009, Tata Motors had operations in 35 countries around the world (Exhibit 1),
and it was on the 100 New Global Challengers list released by Boston Consulting Group. TML became the largest player in the 8-ton heavy truck segment in South
Africa and the second-largest player in the 2- to 4-ton segment in South Africa. TML
is the largest player in light buses and the second-largest in light trucks. The story of
global expansion of Tata Motors started in 2004.
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