That is, until the herd jumps off a cliff ! Like in their mad dash to takeover Corus Steel at all costs, and like their illogical share purchase (of Spice Jet) in the hugely loss making low-cost air carrier segment – both notable cliff jumps of December 2006 – experts are asking whether the Tata Group is too drunk and dizzy with their past successes, to not realize that various research reports have categorically shown how the ‘Rs.1 lakh car’ is a recipe for the grandmother of all disasters?
Forget experts, the Tatas perhaps just have to look across the road to their largest competitor for statistic support. Out of the past 9 months, the lowest priced, once hot selling Maruti 800 has shown dramatic negative growth for 6 months. In fact, in October 2006, the model went on a disaster mode with a negative 30% growth, the largest ever fall in the period! Haven’t these sales figures of even Maruti 800 given them some hint? Not according to Tata Motors, which claims, “In the next 3-5 years, our entire product portfolio will completely change in terms of advancements, we have our complete focus on retaining market shares.”
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Source : IIPM Editorial, 2006
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