Executive Summary: Tata Motors' Expansion into the US and other Foreign Markets

The task of expanding an Indian brand of automobile little-known to the US market into the same market requires corporate diligence and heavy capital investment. The research that follows analyzes all aspects of the introduction of Tata’s smallest and cheapest car, the Nano, to the US auto market. The financial analysis contained in Exhibits 1 through 7 details the rationale behind Tata establishing itself in the US market with a network for 40 car dealerships. Additionally, all Nano vehicles will be sourced directly from the current Nano plant in Gujarat State, India. Importing all cars in the first several years will delay the prospect of building an expensive auto manufacturing plant in North America.

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A detailed supply chain regarding moving completed Nano cars from the factory in India to dealerships across the US is also included. This process will involve using rail, truck, and shipping partners to transport the vehicles half-way around the world. This type of supply chain is lengthy and includes many risks. The largest transportation-related risk concerns adverse whether events that may affect shipping. The greatest strategic risk for Tata Motors is that US consumers will not be as enthralled with the foreign brand as expected. Rising materials costs and potential labor unrest also pose threats to Tata’s global success. Regardless, Tata must make a concerted effort to establish its long-term brand presence in the US using the steps listed above. The unique nature of its vehicles helps make Tata poised to succeed early on in the US.

Other posts on Tata Motors related to US expansion:

Executive Summary: Tata Motors' Expansion into the US and other Foreign Markets
Tata Motors Recent Financial Performance and Customers
Method and Rationale for Tata Motors' Expansion into the US
Demand Forecast for the Tata Nano in the US
Tata Motors Expansion into the US: Retail Pricing Forecast
Tata Motors Expansion into the US, Build Dealerships vs. Dealer Network
Tata Motors Expansion into the US, Import vs. Auto Mfg Plant
Works Cited for Tata Motors Expansion into US

*Image obtained from "PajamaDeen."