Tata Motors, one of India's leading car manufacturers, is a strong play on both autos and emerging markets. With business operations in Asia, Europe, Australia and Africa, they are penetrating the regions where we will still the strongest growth in demand. Demand will remain static or drop in most First World Countries, but emerging economies will continue to grow demand as more and more of their citizenry become consumers.
Tata also recently announced that they will be bring a new model to market sometime next year which will be priced around USD 2,500. What they lose in margin with this automobile will most definately be made up for in volume, as at that price it will be within reach for the greater majority of the worlds buys.
Tata is a strong buy for the long term investor.
$17.5 (05/10/07)
