As India’s car market took off in recent years, global luxury brands focused on selling sumptuous sedans and big sport utility vehicles in Mumbai, Delhi, and Kolkata, home to the bulk of the country’s wealthy. Germany’s Audi shows that’s changing.
Can a car be too cheap? Tata Motors Ltd. is hinting at pricier models based on the Nano, the $2,000 compact it introduced with great fanfare in 2008. The reason: Few buyers wanted a vehicle that was primarily pitched as an inexpensive alternative to a motor scooter.
Three months ago, optimism over Jaguar Land Rover was so high, its Indian parent’s shares were up almost 80 percent this year, valuing Tata Motors Ltd. more than Porsche AG’s holding company. Reality may be setting in.