Tata is expanding the Nano’s markets

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Tata Motors is planning to take its little Nano cars -- the world's cheapest four-wheel consumer vehicles -- across the border of India into other emerging markets. Tata ( TTM , quote ) has been passing around plans to sell the Nano across Southeastern Asia -- basically every significant consumer market from Sri Lanka through Thailand into Indonesia. East Africa is also on the menu for Nano, which would give the little car a fairly extensive presence throughout the Indian Ocean rim by the end of the year. Management promised a few months ago that it will be tackling these markets one by one, so a faster rollout could be a bullish surprise. The big buzz is that TTM is also considering selling a version of the Nano -- which retails at under $3,000 -- in Europe, maybe as early as 2012 or 2013. As it is, TTM is moving 6,000 to 7,000 of the little car most months now, which earns it potential revenue of up to around $20 million a month from the Nano. That is a good indication of how much TTM has grown and how far it still has to come before it catches up to the global players. The company wants to ramp up to 10,000 cars a month, which would translate into a revenue stream of maybe $30 million a month -- not counting Tata's Jaguar Land Rover sales, of course.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

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