Question

what could be the main reason for Tata motors entering the global ultra-low-cost car market?

Answer 1

The Tata Motors is very confident about its future sales and it will get approximately 16 million car sales all over the world by 2020. The reason for this is to entering in to global ultra-low-cost car market. Tata Motors also found that India is main focus of this Ultra-low-cost car market. Because population has increased and people are able to buy cars and they will attract with low-cost strategy, which means no discounts but product is very fair and we can observe that like other countries (China and Russia), income levels of people also increased. So population and growth rate of income levels are main reason to attract people and to entering into global ultra-low cost market