Tata motors is drawing the attention of a very unlikely canidate,the US auto industry.
The article clearly states that tata motors is not a threat right now,but it has all the ingredients to become a global player and even become a threat to the US auto industry.
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What would happen if the US auto industry had to compete against India in its neverending turf war? The long and hard truth is that for now the US market is probably safe as far as competition from India, but Tata Motors is growing in India and throughout Asia and ultimately could make more of a dent in world auto sales. It also sells in Australia, Europe, and the Middle East.
Many of the cars and vehicles just don't look like they would sell in the US, but some would.
The $2 Billion equivalent in sales is small in comparison to an average $50 Billion in quarterly sales out of General Motors (GM-NYSE), $40 Billion out of Ford (F-NYSE), or even $20+ Billion out of Honda (HMC-NYSE). This isn't exactly a threat to the US auto industry, not yet anyway. But look out a decade when the rest of the emerging markets are growing and the US auto industry is potentially still facing many of the same issues as today. The fact that Tata Motors is part of the larger group of companies, the Tata Group, makes this even more probable since the rest of the group is in steel, chemicals, IT, hotels, and financial services.
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Source:
24/7 Wall St.: Tata Motors: A Longer-Term Threat to US Autos?