The relatively recent flurry of activity at India’s Tata Motors, along with a slowing economy and high gas prices, is hurting the price of its stock, with the company chairman concerned about the future outlook. The automaker made itself famous by its introduction of the world’s cheapest car, the Nano, and the recent purchase of the Jaguar and Land Rover brands from Ford.
It’s those two moves that are responsible for the lowest share prices in more than three years. The latest decision to raise prices of its commercial vehicles by 3 percent on Tuesday saw shares fall another 4.2 percent, adding up to a 45 percent loss in 2008.
Chairman Ratan Tata expressed concern yesterday in the company’s annual report, saying commercial vehicle sales will be down until next year, while the company tries to finish its Singur plant where the $2,500 Nano is to be assembled. The plant, previously estimated to cost 17 billion rupees (about $400 million) is now estimated to cost 20 billion (about $460 million), according to Automotive News reports.
Investors and analysts seem to think Tata bit off more than in can chew, as the falling market share suggests. The problem with building a car like the Nano to a specific, low price depends largely on the cost of raw materials, which have been skyrocketing lately. Tata plans to start trial production of the Nano by August, with the cars to go on sale in October.
07/02, 1:32 PM
posted by:
F451
Hmmmm…let’s see…purchasing of brands driven by cultural distinction versus a foreign owner, introducing a ****roach of vehicle (Nano); gluttony in trying to make a contrived name for itself. Yep that about sums it up, it referred to as Tata Motors!
07/02, 1:35 PM
posted by:
xyunya
So he will raise price of Nano and sell it as entry level Jag.
07/02, 1:45 PM
posted by:
shaver
Looks like everone is in for a “adjustment”. Too much too fast, concerning China and India. Speculation is rampant. Hopefully they will only build 100 coal burning plants this year instead of 1000.
07/02, 1:49 PM
posted by:
HemiRoadRunner
Ta Ta Tata!!!
07/02, 2:03 PM
posted by:
howsmydriving
If you think Ford buggered Jaguar, you ain’t seen nothin’ yet.
07/02, 3:05 PM
posted by:
brassmonkey
Could China’s Chery combine with Tata to make a genuine piece of ****? Or will they also need Mahindra?
-
I thought the ragheads were good at tech support. So, if the car breaks down, and you call for a tow, does it route through New Delhi?
07/02, 3:11 PM
posted by:
dmanero
haha, just as I predicted.
07/02, 3:13 PM
posted by:
johnnycanuck
brassmonkey, two (or three) wrongs don’t make a right. I’m sure each one is quite capable of producing a piece of sh*t all by themselves.
07/02, 4:25 PM
posted by:
crackerhemi
No wonder that hemiroadrunner is so angry all the time. Look at his gay myspace: http://www.myspace.com/hemiroadrunner
What a douche… bald, fat, retard trying to pretend he is in his in his twenties? Are you trying to use myspace to internet date or something?
07/02, 4:37 PM
posted by:
olds307
I got a pocket full of pocket full of sunshine
07/02, 4:47 PM
posted by:
JoshyLofty
HAHA, olds.
this car can’t make it. but i think the Nissan version has a chance. Seeing as how Nissan already has all its ducks in a row…
07/02, 8:37 PM
posted by:
monte
to tata i say haha
07/02, 8:48 PM
posted by:
brassmonkey
Anyone else think the front looks a lot like a Prius?
07/02, 8:50 PM
posted by:
jayjc08
I seriously doubt that Tata will miss this opportunity. We may see a huge turnover.
crackerhemi- lol, the girl in the background doesn’t even look exactly… “American”.
dmanero- Your link still doesn’t work. Sends to some anonymous search site.
07/03, 10:00 AM
posted by:
JohnnyBlazE
So “****” from ****roaches gets censored, but LLN’s racist c-nut censors allow “ragheads” to get through?
****ing racist ****S!
07/03, 10:38 AM
posted by:
steviechapstick
not a huge loss