South Asian Business news and information

I hope you already know that Tata Motors Limited (NYSE:TTM) is trying to buy Jaguar Cars Limited and Land Rover. Tata may not be an important player in the global auto industry but in India, it is a big name. And you know that Indian economy is growing fast and Indian car market is growing even faster. Tata caused a huge uproar last year when it announced that it was going to introduce the cheapest car in the world in India by 2008. So, it will be interesting to note whether TATA can handle expensive cars of Jaguar and Land Rover. Thomas Stallkamp thinks that Tata cannot handle expensive cars.

Reuters reported:

"I don't understand how a company that's going to make cars for $2,000 can sell cars for $120,000," said Thomas Stallkamp, a partner with private equity firm Ripplewood Holdings, which had been among the bidders for Jaguar and Land Rover.

"The specifics of how you merge a car company that's hardly a car company right now with those iconic brands is somewhat problematic," Stallkamp, who is also the former president of Chrysler, said at the Reuters Autos Summit in Detroit.

It is interesting observation from Thomas Stallkamp. Well, I have to admit that I am not auto expert and I do not want to support or argue with what Thomas Stallkamp has said about Tata Motors. I just think that Tata officials should come forward and give their own opinion about this matter.

What is your idea about it? Do you think that Tata Motors can handle cars of $100,000?

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