In India, the automobile industry is dominated by small cars and that is why Indian automakers have continuously strived to manufacture the same at lower prices. Tata Motors Limited grabbed headlines when it launched the world’s cheapest car, Nano. However, the company is also eager to make its place in European small car segment.
Executives of Tata Motors Limited have stated that they are looking forward to launch customer clinics in 2012 in Europe. Moreover, the decision to increase market presence of the brand in Europe will be taken in the initial months of 2013. Tata Motors is positive about their decision to enter European automobile market as executives believe that smallest sub-segments will witness maximum growth.
Last week, Tata Motors came up with the news that as compared to previous year its sales in the international market increased by 35% in November. However, entering the European market may turn out to be a blunder as the auto sales is bearing the brunt of current economic conditions persisting in Europe. Fiat is one such car model that has tumbled in European auto market and therefore, has turned their focus on its Chrysler acquisition to balance its P&L.
It is not the first time that Tata Motors Limited is introducing itself to the European continent. In 2008, the company took over Jaguar and Land Rover for $2.3 million, which proved to be a shot in the arm for Tata in European market. However, going by the figures, Tata has been a needle in haystack when it comes to bringing small cars in Europe. Executives of the company have cleared the air with the announcement that they are not going to bring Nano in the near future to the European auto market. With small car models facing fierce competition from luxury models that have for long dominated Europe, Tata Motors Limited will have to think out of the box to bring a model that can withstand this competition.
