Tata Motors considers overseas acquisitions

12 July 2005

Mumbai: According to Tata group chairman Ratan Tata, Tata Motors will look at acquisitions of commercial and passenger vehicle plants across Europe, South Africa, Latin America, South East Asia and China. Tata Motors operates in these economies through acquired companies and joint ventures.

Addressing the shareholders of the company at its 60th annual general meeting in Mumbai Ratan Tata, said that it is ideal to go global and operate in different economies across all continents than limiting one's self to one or two countries.

Tata said the company would focus more on cars for the middle and lower middle-class and less on high-end cars. The company expects to roll out the Rs1-lakh small car over the next three years.

"We will endeavour on making cars more affordable to the common man. India has a growing middle class, equivalent to the size of the US. We will be looking towards tapping this potential," he said.

Post WTO, with the removal of trade barriers, the Indian economy is expected to face tough competition from global players. Tremendous pressure on margins on account of growing metal prices has also been expected.

"We will face the challenge through cost reductions, new launches and, above all, focus on cars for the common man," Tata said.