A Roadblock for Tata Nano

Topics: Tata Nano, Tata Motors, Fuel cell Pages: 2 (473 words) Published: October 8, 2012
Tata Motors

India is not a country that encourages free trade.the government has imposed many trade barriers,like very high taxes for one.these high taxes are a form of preventing the local industries domestic products from international companies. Also, the bureacracy that exists is india is the worst.every level of the heirachy of any department,corporate,law,governemnt is bound to accept bribe and is corrupt.Tata has also undergone tremendous challenges when building its Nano factory in west bengal,the main reason was government officials had tried to sell land used for governemnt purposes of development to a private company.this was the reason ratan tata withdrew from the deal.the trade barriers like high import duties have a positve impact on tata.Higher prices for imported cars would create more market for the locally produced cars in India. In recent times,iIndian governemnt has been leanient interms of poilcies and moving towards a free-market economy.This has increases the amount of FDI’s coming into the country and as a result has generated an economic growth as well. this growth has increased the way of life of consumers in India and many are aspiring to buy cars,which has helped in the demand for Tata’s motor cars. As demand increases,Tata also will aspire to create better and efficient models which means investing in R&D.As revenues for company increases,this creates a surplus which would mean Tata could pursue international markets for streams for developing its products technically.This was the reasons for the acquisation of Jaguar Landrover.And the reason for Corus was to increase its market share both locally and to supply Europe.(the acquisation made Tata the 5th largest steel maker). Domestically,tata should do its research as commercial risks exist in any business venture of a country.the land debacle in Gujarat was becaise government officials tried to sell it forcefully onto big corporates like Tata.

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