Tata
Motors ready for global race
The Telegraph —
September 30, 2004
Tata
Motors plans to go global in a big way even as
the group aims to reduce the number of companies
by a reasonable amount, focusing on seven existing
core sectors, its chairman Ratan Tata has said.
"The
success of Tata Motors’ international expansion
will be judged less by the number of red pins
that executives can stick into a map than by its
ability to make a mark in a few key markets and
to produce a more sophisticated product,"
Tata said in an interview to financial Times published
today.
Tata
was in the US for the listing of Tata Motors on
the New York Stock Exchange earlier this week.
Tata
Motors converted its Luxembourg-traded global
depositary shares into American depositary receipts
(ADRs)
"We’re
not going to go abroad just to send a few vehicles.
Instead, the group is seeking to hold our head
high and say6 we’ve made a presence in that country,"
he said.
Tata
is especially interested in South Africa, which
he sees as a stepping stone to other markets in
the region. The group already builds buses and
light trucks there with Imperial Holdings of Johannesburg,
and is bidding to become one of the main suppliers
of minibus taxis
Tata
wants to sell its Indigo and Indica cars in the
country, initially exporting them from India,
but later possibly setting up a contract manufacturing
operation. "We’re really making commitment
to South Africa," Tata said.
The
company is also seeking to gain a foothold in
south America’s Mercosur trading bloc, which includes
Argentina, Brazil, Paraguay and Uruguay.
Elsewhere,
Tata signed a deal with Brilliance China Automotive
Holdings of Shanghai last month to study the feasibility
of selling Tata cars in China.
Tata
said one of his most ambitious domestic projects
is to produce a vehicle with a selling price below
Rs.100,000 which would plug a gap in the market
between scooters and cars.
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