Essay on Tata Motors

3607 Words Nov 26th, 2013 15 Pages
Tata Motors

1. Describe the economic characteristics of the global motor vehicle industry.

The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging
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The next factor is to have a quality, compelling products that innovate and capture the customers attention. This is clear in that while people are statistically staying away from buying a car in exchange for public transportation especially in England, that luxury cars are selling well in worldwide poor economies. I would say the next factor is to create cars to sell to the U.S. market. Take the foreign market for example where the Ford focus in the United states is a clear C list car that isn’t that desirable is a great seller in countries like Germany where it is highly desired. The third factor is public perception. Auto makers must capture the public attention for sales, not just make the “best” or cheapest car. For years in America we have an opinion that due to the bailout for example that foreign cars are better and as such seek out Mercedes, Audi, BMW, Jaguar etc. and not a Cadillac. We seen this with GM who was trying to sell the ponaic G8 that was half the cost of European performance sedans and was a failure in the U.S. despite being one of GM's most exciting cars ever made for the market. The forth factor would be to study the market carefully. Motor vehicle companies must compete globally to make a living and as such must examine the growing markets worldwide and

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