McIndica in the works

Tata changes to a higher gear

Reuben Abraham has an interesting post about Tata Motors’ growth and international expansion plans. A generation ago, Tata heavy vehicles were exported to many countries in South East Asia and Africa, before India’s licence Raj proved to an albatross around its neck.

Britain and Iran are two new export markets for Tata today.

Tata Motors’ is now scaling up domestic production and as well as planning a new entry-level car. Interestingly, the new 600cc car will be produced in a manufacturing franchise model – with Tata Motors producing the core components but the rest of the parts manufactured and assembled by a network of regional manufacturers. Mr Ratan Tata expects this to address issues of rural employment of which the new government is a vocal champion. All the more reason why the new government should quickly solve the issue over foreign-exchange controls that is holding back Tata Motors’ deal with its Iranian distributor.