1 Surprising Stock to Buy for Global Diversification

If asked about Tata Motors (NYSE: TTM  ) , I'm willing to bet you that 99% of investors say something along the lines of "that Indian company with that really cheap car." While it's true that Tata Motors is most renowned for creating the $2,500 Nano, this automotive company boasts an increasingly impressive reach and vision that extends well beyond a car the price of a Macbook.

As I explained in a previous article, Tata Motors is taking advantage of shifting trends in the automotive sector by expanding its luxury vehicle and light truck businesses. It also enjoys a profitable bus business and is accelerating fast into the electric vehicle market (think Tesla Motors (Nasdaq: TSLA  ) at 1/50th of the price). Tata Motors certainly has more to offer than just "that really cheap car."

Tata Motors takes its geographical diversification seriously. Its vehicles are sold in 129 countries across six continents, solidifying global market presence and protecting itself from regional demand shocks.

In the past decade, Tata has also expanded its manufacturing facilities across much of the world. Check out the slideshow below to understand why Tata is quickly becoming much more than "that Indian company."

Sources: Tata Motors 20-F and 2011-2012 annual report.

Tata Motors is an excellent example of a homegrown company making a name for itself in international markets, but American companies are also recognizing the opportunity for global profit. For a limited time, The Motley Fool is offering a special free report: "3 American Companies Set to Dominate the World." It's as free as this article, so get yours today!

Fool contributor Justin Loiseau owns neither the stocks nor the vehicles mentioned in this article. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS TMFJLo.

The Motley Fool owns shares of Tesla Motors. Motley Fool newsletter services have recommended buying shares of Ford Motor and Tesla Motors, as well as creating a synthetic long position in Ford Motor. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1965699, ~/Articles/ArticleHandler.aspx, 9/16/2014 5:51:48 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement