Article Assignment #4
Article Summary: The automotive market in India is not doing as well as the expectation they set for themselves, compared to China. Two years ago, India sold over 2 million vehicles, now their sales started to slow down and it is predicted to remain slow. This decrease in sales rate in combination with over production in merchandise is likely to increase export by Indian automakers and boost domestic makers to overcome foreign markets.
The Indian car markets, as well as their competition the Chinese automakers, have always set their goal to expand their business worldwide. Although China started exporting their products only 8 years prior, India’s low base price has already made the production type very popular. Being close to a few of the fastest expanding markets in Southeast Asia has helped, although Africa had a very successful market. According to a statement from South Africa’s Standard Bank, car sales in the area have increased to 160% since 2008 to roughly half of South Korea’s numbers and 3 times China’s sales. Overall, exports of Indian vehicles reached almost 3 million in the year to April 2012; although almost 2 and a half million of these were 2 and 3 wheeler type vehicles used for motor cross bikes.
Tata Motors has been a persistent exporter to the less particular and picky emerging markets. In 2011, they also began selling the Nano in foregin markets, aiming in on parts of South Aferica and Asia. The Nano is one of the world’s most smallest and cheapest in price cars. Towards the end of 2012, Tata Motors announced plans to introduce the Nano to the US, where the price tag in US dollar would be around $3,000; although, they have not yet completely gone through with their plans for this car.
Tata Motors have been very successful in in acquiring foregin brands such as the UK-based Jaguar Land Rover as it was being testing