Tata Motors facing a tough time

Leading auto maker Tata Motors is facing a tough time. Few years back Tata Motors surprised the international auto market by acquiring British luxury car maker Jaguar and Land Rover In a bit expensive deal of $2.3 billion. Because of gloom in global auto market the Sales of commercial vehicles of the company dipped by 40% in India while exports dipped by over 45% in the quarter ended in December, 2008. Sales of passenger cars dipped by over14% of Tata Motors.

Although the company is optimistic about success of its most popular model Tata Nano but the price of this car is very critical because after the announcement of making Tata Nano by  Tata Motors the prices of input materials has been increased very much and because of this it will be very difficult for Tata Motors to sell Tata Nano at its announced price of 1 lakh.

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