World is coming to the TATAs!!

"TATA Motors finally got world brands-Jaguar & Land Rover"; A moment of great pride and humility for 'We' as Indians. No doubt it is absolutely a 'wow' thing, an apt of 'great misfit' for the western eyes but at the same time even the Indian markets presented their resentment towards this great USD 2.3 Billion TATA-Ford deal. As the deal was announced on Thursday, stocks of TATA Motors went down by 7.5% in the Indian stock markets. Although, the fundamentals that drove the 'bear run' over the TATA Motors stock were within expectations, analysts questioned the medium and long term feasibility of this new heavy weight TATA acquisition. According to market sources, investors were worried and speculative about TATA's ability to restore and re-inforce the fading light of 'Jaguar & Land Rover' brands in the International market. Ford (US Auto Giant) was facing tough competition from brands like Mitusubishi, Toyota, Hummer, Honda, General Motors and Hyundai within EU and US while marketing these mid-high value sedan (Jaguar) and SUV (Land Rover). The company was also facing problem with high manufacturing costs and input costs associated with the assembling of these units, raw material availibility and spare parts supplies.

As TATA takes over the management, production and operations of these brands within next 24 months, the biggest challange which the Indian industry looks at is the TATA's ability to merge the management and design & implement 'low cost production' or 'lean manufacturing facilities' to cut rising costs in the EU and Asian markets. Another interesting challange for TATA would be to 'position and market' these luxury brands in the already maturing Indian markets when companies like BMW, AUDI, MERCEDES, TOYOTA, MITSUBISHI, HONDA, NISSAN & MAZDA are already onset with their plans to roll out aggressive premium products.

All in all, I personally believe it is going to be a 'win-win' situation for TATAs and Indian investors. Guys, after all it's TATA:-)