Yes this is now no longer a surprise ,Tata are the owners of the Landrover and jaguar brand its just moments away.Congratulations Tata,you have made us feel proud.
But now lets get back to reality.Remember every analyst/critic is against this buying decision of Tata.So what do they have to say.
The first and foremost thing is where is the synergy between Tata motors and Jaguar/Landrover.They are two complete extremities catering to a different set of clientele. Look at the premium brands of the japanese giants Honda/Toyota.Acura/Lexus brands have vehicles which essentially share platforms with vehicles from the parent company.So Tata motors needs to take advantage of the jaguar and Landrover platforms but would people accept expensive vehicles from Tata Motors.
Even on their own while the Landrover badge is not that bad,jaguar is struggling amongst its peers.Competition has left jaguar far behind and the target group of jaguar customers is not what any company would feel good about.Right now Jeremy Clarkson may be the only guy who would go and buy a Jaguar.Considering rising oil prices and green house emissions Landrover is the bad guy as far as environmentalists are concerned.So once again the two badges are not what they were once upon a time.
Cost cutting too is an area where Tata Motors will not have complete freedom since it would not be able lay off people,have to cater to pensions and most importantly depend on Ford motors for major components of the vehicle[Remember Ford will supply engines even after the sale].Outsourcing to India is also not an option.
Neither Jaguar nor Landrover are known for hybrids.So Tata would have to provide something to satisfy the environmentalists.But Tata right themselves do not have anything green to offer.Perhaps the air cars in future.
I don't see anything special that Tata have which manufacturers like BMW or Ford could not offer to resurrect the Landrover and Jaguar brands.
Lastly Tata motors themselves are struggling on their home turf with reducing sales and the ambitous project of the one lakh car which could be a strain on Tata Motors atleast for the immediate future.
Tata Motors is essentially now a complete automobile manufacture offering the cheapest of cars to luxury cars and SUV's as well as trucks and buses.But can Tata Motors remain the only exception and its not that others have not tried.The ones who tried have failed and have had to split the business and in some cases have had to hive off certain units.
All in all what I can say is I am with the analysts/critics in this case and am not too bullish on tata motors for the short term atleast[and by that I mean atleast 3-5 years].But then Tata motors always have this tendency to prove its critics wrong.The tagline impossible is nothing is more apt for Tata than addidas.
Buying a car read this
Tuesday, March 25, 2008
Congratulations Tata Motors
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Labels: acura, jaguar, landrover, lexus, Tata Motors
Monday, March 24, 2008
Fantastic ad from Lexus
While at the topic of lexus,I would like to share this beautiful ad from Lexus.No need for words from my side.Truly represents perfection.
Lexus to be sold in the Indian markets soon
Yes finally we are going to get Lexus in India.Toyota's luxury brand Lexus is heading to the Indian market.As you can expect with Toyota brands they will be here only after doing their homework.
Lexus would be sold at exclusive outlets in Metros and major cities so by the time Lexus is sold here it may already have a well established network.But yes don't expect them to be sold at your local toyota dealership even if Lexus takes advantage of Toyota's distribution chain in India.
Economic Times reports that Lexus plans to introduce the LS 460 sedan[the car that can park on its own],LX 470 SUV and the RX 330 SUV.I guess if Lexus is successful here then at a later stage we could see more vehicles.By when can we expect lexus not sure but if ET is right then we may see Lexus here real soon since according to them Lexus has already started the preliminary groundwork involving strategy and dealerships.
[Source:Economic Times]
[Image source:wikipedia,cnet.com]
Also read:
Whats keeping Lexus Away from the Indian Markets?
Monday, March 17, 2008
Whats keeping Lexus Away from the Indian Markets?
Each month you hear Mercedes and BMW say sales have overshot expectations by a huge margin.BMW now say they could well achieve 10000 units per annum by 2010 easily[and then you will again hear they have exceeded this target].Its the same with the others as well be it Mercedes,Volvo,Audi.
Then why does one of the hottest brands as far as the Premium badge is considered prefer to stay away from the Indian markets.Yes Lexus has well and truly been accepted as a luxury brand throughout the world and its no different here in India.We have imports here in the Indian market and the SUV's especially seem to be quite popular.Why does Toyota want to deprive itself from one of the hottest markets.Even the Camry which is imported from Japan and attracting those huge duties is still doing pretty well considering its ridiculously high price in the Indian market.So the excuse that a Lexus imported as a completely built unit will not attract customers does not real stand firm ground.And surely if BMW and Mercedes can do it so can Lexus it too should start assembling cars in India there is definitely a big enough enough market in India.
Toyota is simply giving the first mover advantage to these already well established brands and letting them set up a good enough network in India.This was the best time to catch these big boys on the back foot no point taking them head-on when they are well established in India[leaving aside Mercedes which is already well established and the darling of the premium car buyers in India].
But then isn't this the case with the whole Toyota brand in India.It is ridiculous that Toyota just has two vehicles in the mainstream market in India[4 overall in India] after more than 10 years in the Indian market.Yes Toyota is approaching the Indian market with caution after the DCM Toyota fiasco but does it really have to be so extreme.We know you have some of the best vehicles for markets like ours,but please get them here first.
[Image source:Wikipedia]
Also read:
Lexus to be sold in the Indian markets soon