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Auto industry moves to India and China

Posted January 26, 2008

Baltimore — (TFN): India’s Tata Motors recently unveiled the world’s cheapest car. Tata is also the preferred bidder to take over the up-market brands Jaguar and Land Rover from Ford. Is the company mad, or is there something big going on here? China and India have populations several times those of the US and EU, an increasing proportion of whom are becoming wealthy enough to buy an automobile, yet their labor costs are and will remain a small fraction of those in the US, Japan or Germany.

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