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Tata Nano Car Strategy in North American Market

Tata Motors have had to consider various strategies to improve the performance of Tata Nano car in North American markets. The company has already established an assembling firm in Mexico in order to make the cars readily available in North America. Most North American countries are very strict when it comes to safety measures and regulations. Incorporating each safety measure in the Nano car will affect its overall price. The Nano cars should also be able to meet emission standards as per the requirements in North American countries. Taxation as well as export regulations are the major barrier to the success of Nano car in North American markets as this may bear extra burden to the owner of the car (Ireland et al., 2008). Tata Motors needs to invest wisely and sell the Nano car at affordable prices in line with the closest competitor.

PESTLE Analysis of Tata Motors

Political

The establishment of Tata Motors in North American countries is due to the stable political environment and availability of business opportunities in those countries. Tata Motors has paid close attention to political climate, laws and regulations in those countries as well as paying attention to regional governing bodies. The success of any business relies on laws governing commerce, growth, trade and investments which depend on the provisions of the local government. However, it has been difficult for Tata Motors to sell Nano car in North American countries as it is still unfamiliar with locals (Aswthappa, 2010). The company needs to add extra features to the car so that to make it more comfortable for the North American population.

Economic

The world economy has met various challenges in the past few years. Despite the crisis and economic recession, Tata Motors has been facing challenges in the business arena in terms of products promotion and distribution. Tata Motors is in a rapid growth period expanding and forming joint ventures all over the globe (Gillespie, 2013). Although the Nano car has not been doing well in North American markets, findings by the company’s sales managers indicate that demand for the cars will grow up.

Social

Working on Corporate Social Responsibility, the Company has been able to drive its vision of making the world’s cheapest car. Comparing different world markets, the Nano car has been facing challenges as compared to India due to difference in population sizes. In India, the car has been able to perform well due to its large population. Tata Motors has to view the economy in North American countries in a global perspective in order to maintain local market knowledge and understanding. Key strategies such as product placement and positioning should be put in place to improve customers’ awareness of those products (Boone & Kurtz, 2011).

Technology

Technology offers a lot of potential in implementing new ideas and innovations in the business line. Tata Motors through Tata Technologies is dedicated to ensuring that it is using the most appropriate technology in order to meet the market requirements. The company has adopted a strategy to develop the new cars models that will fit the customers’ needs (Campbell & Craig, 2005). The company is well known for its technological advancement and research programs that enable it to come up with new products.

Legal

Tata Motors is sensitive to legal matters and adheres to rules and regulations established by regional and international business bodies. Tata Motors has legally introduced Nano cars in North America although marketing the cars has not been successful for the Company (Gillespie, 2013).

Environmental

On the environmental issue, Tata Motors is concerned with maintaining and improving environmental conditions and limiting environmental hazards. The company also has strategic measures for combating pollution produced by vehicles (Campbell & Craig, 2005)

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