With a successful domestic launch of the Nano in the rear-view mirror, Tata Motors now seeks to make tracks into the competitive US market in three years with a larger, pricier model. Speaking on the first day of the 10th Auto Expo, company chairman Ratan Tata said on Tuesday, ?We recognise that there is a market for low-cost cars in developed countries.?
?However, for the US, we need to have a bigger engine on the Nano, and the car has to undergo more crash tests. The company is working on these and I think it is as far as three years before its debut in the US,? Tata cautioned. The US is the world?s largest auto market, although China is set to overtake it shortly.
Earlier, Tata had said hybrid versions of the Nano were planned.Italy?s Fiat and Tata Motors also want to sell the vehicle jointly in Latin America.
Tata also brushed aside analysts? concerns that Tata Motors was overstretched as a result of acquiring the ailing Jaguar and Land Rover brands in 2008 for $2.3 billion. While admitting that the auto industry had taken some knocks as a result of the economic slowdown, he said the acquisition should be seen in the context of long-term value. “No one should make an acquisition on a short-term basis. You acquire a company to live with it,” Tata said.
When the company acquired the JLR brands from US carmaker Ford, it was a difficult time. But “we got more than what we anticipated when we acquired this company”, he said. “It is not a short-term investment that we made to add to our egos. It has enormous capabilities,” Tata added. Tata Motors recently reported a return to operating profit for the JLR unit, suggesting cost cuts were bearing fruit and that new models were attracting buyers.
On Singur, Tata said he has no objection to returning the company?s disputed land in West Bengal provided adequate compensation is made for investments made there. His statement comes as Tata Motors prepares to start production of the Nano at its new plant at Sanand in Gujarat this year.
?We still hold the leased land (at Singur) and there have been no discussions with the state government. We would not stand in the way of other usage of the land provided we are compensated for the investments we left behind,? he said.
Tata Motors was allotted 997 acre to set up the Nano car project in Singur. However, the company shifted to Sanand after a prolonged agitation by Mamata Banerjee-led Trinamool Congress demanding the return of 400 acre to farmers. Tata Motors had earlier announced that it had invested Rs 1,500 crore at the Singur facility.
On Tuesday, the company showcased three new vehicles from its stable, including the Aria, a crossover between a mid-range, multi-purpose vehicle and sports utility vehicle; a hatchback-sized eight-seat, multi-purpose vehicle called Venture; and the Magic Iris, a four-seat public transportation vehicle. Also unveiled was the new Jaguar XJ.
On the commercial vehicle side, the company displayed a new Starbus platform, the Prime range of world trucks, CNG-fuelled vehicles and a Winger-based special application. The company also has a hybrid city bus on display.