TATA motors is planning to launch a electric version of its Indica Vista in Europe. The car will be imported into Norway in semi knocked down kits which can then be assembled in the importing country. Initially, the company plans to start exporting this electronic variant of the Indica to Norway. Currently there are no plans of selling the e-car in India.

This goes to show that the Indian company is looking to the future unlike it’s American counterparts who got blindsided by energy crisis and the subsequent shifting of their markets from gas guzzling SUV’s to more fuel efficient smaller cars of the Japanese variety. The situation has been so bad that they have had to go to their government with a begging bowl and have been in the news for all the wrong reasons lately. By being among the first able to develop fuel efficient vehicles Tata Motors might be able to take a lead in automobile manufacturing like it has already done by developing the world’s cheapest car.

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Questions

Which section of the Ansoff Matrix would this decision taken by the company fall into and why?

Why do you think the company wants to sell the car in European markets first and not in India?

What kind of conditions will make it lucrative for the company to sell it’s EV in India and other developing markets?