Why Tata should tie up with Mazda Tata and Mazda - unlikely names, but if you look closely, they have fairly complementary product lines and could help each other immensely.
Let's start by examining both manufacturers independently before looking at why working together would make sense
1. Tata Motors Group - Just coming out of a very eventful decade, in which they bought and turned around Daewoo Commercial Vehicles, Jaguar Land Rover; launched the world's cheapest car and continues to hold a major share of India's CV market despite world class competition. If there's one dark spot in Tata Motors, its the local passenger vehicle business - essentially the cars, mini vans, MUVs and SUVs - which have practically been treated like the proverbial middle child in a family of superstars.
Tata has been desperately trying for a couple of years now to reverse the decline in sales of their cars / SUVs by introducing facelift after facelift, but this is just resulting in CAPEX, with no sales increase.
I believe Tata may not really have the know how to produce a niggle free, 'desirable' car at VFM prices that the average person on the street wants to buy. One just needs to look at Maruti and Hyundai to understand what's needed, not necessary that you'll learn how its done.
This is where Mazda comes in.
2. Mazda - one of the few independent auto companies in the world, renowned for producing exactly what Tata is lacking or wants....desirable VFM cars. Everyone remembers the Mazda MX5/Miata and how it changed the sports car world for ever.
For a long time Mazda was in a JV with Ford (who owned quite a bit of Mazda), but is now completely on its own.
Currently, Mazda is on a high, with a number of its cars - 3, 6, MX5 all being praised for their design, driving dynamics etc at VFM prices. The Kodo design language and SkyActiv engine tech are highlights as well
If we look at the market positioning of Tata and Mazda, you have
1. JLR at the premium segment
2. Mazda in the entry level premium segment
3. Tata in the economy segment
Surely there are synergies to be had here by combining the best of Tata and Mazda? Tata/JLR could leverage some of Mazda's technology and production expertise and Mazda can leverage some of the premium/cachet of JLR and get an entry into India via Tata. A WIN -WIN situation and produce a true world class auto group.
Thoughts?
Last edited by prashanthyr : 5th June 2014 at 22:12.
Reason: added content
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