Do Mergers, Tie-Up & Introducing New Brands Help Automotive Brands?


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Akash1886

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Buddies,

To explore new avenues and opportunities every industry looks for new partners and ventures. To further enhance their business, expand their horizons, two or more brands often become partners or one brand buys out another or a brand introduces a sub brand. So seeing such new introductions, mergers and tie-up specifically to our Indian Automotive industry as a whole (2 Wheeler Brands Included), I would like to have your views that how do such moves help the automotive brands in the long run in regards to their image, product line up, customer base and re-sales?

Some prominent examples are: TATA buying JLR, Nissan's sub-brand Nismo, TATA's TAMO, TATA joining hands with VW & Skoda, VW buying Skoda, Hero 2 Wheeler selling their products separately, Renault-Nissan & Datsun operating in India.

Also, some specific questions:

1) How did TATA benefit by buying JLR in terms of brand image & technology sharing and product enhancement?

2) How has SKODA benefited by VW's merger with it? Knowing well that both these brands make good products.

3) What's your expectations with TAMO the race brand of TATA Motors?

4) How will TATA benefit in long run by joining hands with VW & Skoda? How will this Joint effort help in improving the brand image of all the 3?

Regards

Akash
 
Joined
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Buddies,

To explore new avenues and opportunities every industry looks for new partners and ventures. To further enhance their business, expand their horizons, two or more brands often become partners or one brand buys out another or a brand introduces a sub brand. So seeing such new introductions, mergers and tie-up specifically to our Indian Automotive industry as a whole (2 Wheeler Brands Included), I would like to have your views that how do such moves help the automotive brands in the long run in regards to their image, product line up, customer base and re-sales?

Some prominent examples are: TATA buying JLR, Nissan's sub-brand Nismo, TATA's TAMO, TATA joining hands with VW & Skoda, VW buying Skoda, Hero 2 Wheeler selling their products separately, Renault-Nissan & Datsun operating in India.

Also, some specific questions:

1) How did TATA benefit by buying JLR in terms of brand image & technology sharing and product enhancement?

2) How has SKODA benefited by VW's merger with it? Knowing well that both these brands make good products.

3) What's your expectations with TAMO the race brand of TATA Motors?

4) How will TATA benefit in long run by joining hands with VW & Skoda? How will this Joint effort help in improving the brand image of all the 3?

Regards

Akash
1) Tata can utilize older platforms and disposed technologies from JLR by saving RnD and development cost. Infact they are going to do the same with Q5 platform. However JLR might not fetch them best interm of the brand equity as such.

2) platform and technology sharing is where both these brands take benefit from. Economy of scale is the key here.

3) The incubator for Tata Motors to test the depth and acceptance of the new ideas and technologies along with a different brand identity.

4) Again the answer is Economy of scale. Tata will get the most out of it by getting the fast ROI and can actually go on full fledged RnD as now they can get required nos of sale to compensate high development cost with less risk by reaching to global market without even introducing their own lineup however I doubt that they will get any benefit in terms of brand equity as of now.
 
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