Do you think that Tata Nano can outperform Maruti?

Tata will outperform not only Maruti but also other competitors like Chevrolet, Hyundai, Fiat, etc. As you know it is the world’s cheapest car and it will not only outperform Indian car manufacturers but also will have direct impact on world car market. Here are my concerns and how I believe this:

Nano will be a great help for middle class and lower class people who had been driving scooters and bikes for their life and now have booked Nano which is a complete car. I think the success rate of Nano is incredible and Maruti and others have to think twice or may be thrice to launch a more competitive car in this segment. I have seen people who are so happy with its launch.

Tata Motors - the biggest Auto company of country and the largest producer of commercial vehicles in India and second largest producer of passenger cars in India has launched Tata Nano last month on March 23^rd. It is a big success fot TATAs and it has already created a big hype worldwide. Nissan, Bajaj already planning to enter the segment which is still on papers.  If Tata will be successful in selling this 1 lakh Car then they may be the leaders soon.

Tata is also planning to take over Jaguar and Range Rover, so their name will spread(even though the original names will be retained).  So for the long run, I think this car should do well, specially since the motor industry is booming in India.

Effects on Tata Shares

Well I personally feel that this will be a great benefit to Tata Motors going forward and this should take stocks to higher levels from the current level of 710 or so, just because of the fact that the valuations for the company are really cheap.

Above all , Nano, although operating margin is less on it but volume will show its magic.

Also Tata Motors had applied to government for some special benefits which should accrue to it in result of its continuous endeavor towards cost-cutting of small cars. 

Tata Motors has paid 75 crore INR as advance tax versus 190 crore INR (YoY),  3/26/08

Why Tata is the best nowadays

- Tata sold total of 2,75,000 vehicles last year.

- JLR sold 2,70,000 vehicles last year.

- Add to that expected NANO sales.

- Signed JV with FIAT worth 4000 crore with Maharashtra government

In simple terms - TATA Motors is now playing in a big league and will soon be a global auto giant.

Economies of all countries are going down and these Tatas are buying around the world.

TATA has got new technology and a huge dealer network using which they can sell cars like Indica across Europe and America.

Maruti 800 versus Tata Nano

If compared to Maruti 800 which is around 2.25 lakhs INR, Nano is just 1.30 lakhs and it has got features like AC, power windows, power steering whereas Maruti 800 in 2.25 is only giving a raw car without these features. It has got engine on the back which is a great feature for a car first time seen in a car in India. This feature will give comfort to the driver and it has got an extra tire in the front where the usual engine of most of the cars is located. It will give safety to the driver and accompanying passengers.

Nano’s top speed is 110 km/hr and what else do you want from a car in this segment. People do not want to drive rash but they want to get an automotive with roof and features which they cannot purchase from other companies.  They can take their family to a small trip, go to their office, and buy some products from the market. Why I am saying this is because Tata Nano has fulfilled the need of common people and common people are most valued people for any sector in the market. More people to purchase and buy their products, more money and respect to Tata.

If you have any doubts or you need any clarifications on Tata Nano and questions related to its launch and after sales value, write me a comment below and I would be really glad to answer that.