Emerging Markets Get A New Ride (TTM)

When Tata Motors TTM first unveiled its Nano mini-car, the dream of automobile ownership was within grasp of the Indian consumer. Now, Tata wants to make that dream possible for other emerging market nations as well. Executives at two parts suppliers told Dow Jones that the company may start exporting the car to Indonesia, Thailand, Sri Lanka and Africa by the end of year. This rumor was recently confirmed by Tata spokesman Debasis Ray, which said that the company has started overseas shipments of the Nano. Tata Motors sold a record 10,012 Nano cars in April and has a goal of selling at least a million units each year. The recent decision to beginning exporting the car across a variety of emerging markets could be a game changer for the company. The cars low price ($3,150 for a base model) may possibly be exactly what newly emerging middle class consumers want. Sales of the Nano should be brisk and the move will help India's largest auto maker by reducing its dependency on its home market. It'll be interesting to see how domestic automakers like Ford F adjust their emerging market strategies in light of Tata's news. With shares of Tata sitting about $10 below its 52-week highs, now may be time to pounce on the Indian automaker. The potential of the Nano in places like Africa and Thailand is huge.