Tata Motors in the running for big Indian military contract

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Tata Motors in the running for big Indian military contract

Read more: Tata Motors in the running for big Indian military contract - NASDAQ.com



Tata Motors' acquisition of Jaguar Land Rover raised its profile among military customers as well as the world's luxury auto markets. Tata ( TTM , quote ) surprised some analysts by bidding for a contract to develop and sell $10 billion in lightly armored personnel carriers to the Indian army. Some heavyweights in the Indian defense sector are competing for the sale, along with rival car maker Mahindra & Mahindra (thinly traded here as MAHMF , quote ), which has its own military connections. True, Tata is best known for ultra-low-cost cars like the Nano, aimed at entry-level drivers. So a few analysts are dismissing the idea that this company has any serious chance of winning the contract. But remember, Land Rover got its start as an adaptation of British military vehicle designs, and plenty of these durable cars remain in use throughout the world's armies. Markets have focused on the "Jaguar" side of JLR, which Tata bought in early 2008 from Ford Motor ( F , quote ) for barely $2.3 billion. Jaguar's luxury passenger cars are in high demand in China, Europe and other markets. Maybe now is the time that Land Rover served as Tata's ace in the hole on the military side. We will know more when Delhi releases its short list of candidates by the end of the month. Meanwhile, TTM looks like it has momentum behind it, and a win here could add enormous upside for this company, which still only does $20 million in revenue a year:

Read more: Tata Motors in the running for big Indian military contract - NASDAQ.com