India’s Tata Motors aiming for increased truck exports image

Tata Motors, the country’s largest automaker by revenue and also the parent company of British premium carmaker Jaguar Land Rover, announced it would triple its exports of trucks and buses to countries in Asia and beyond.

The company has been trying hard to counter the very slow deliver growth seen at home in India, as industrial expansion has remained feeble even as Prime Minister Narendra Modi introduced a range of economic reforms. Companies such as Tata have been forced to seek overseas exports to recoup their profit from selling large trucks and buses. “This (exports) is something we are stressing heavily,” commented Ravi Pisharody, executive director of Tata’s commercial vehicles business. The unit seeks to lit exports from 45,000 vehicles in the year that ended on March 31 to at least 150,000 units in three to four years. The company so far mostly exported its commercial vehicle products to neighboring nations Sri Lanka, Bangladesh and Nepal, but will now seek to increase deliveries to countries in the Middle East and Southeast Asia. “In many markets, there is no local commercial vehicle company. It is the Europeans we are competing with and… our products’ appearance and specifications are comparable and we have a 10 percent price advantage,” the executive added, predicting the rising exports would help offset the lagging internal sales.

During the April-June quarter the automaker’s exports of trucks and buses jumped 39 percent to almost 13,000 vehicles from the same period last year, while India sales slumped one percent over the same period to around 66,000 units, according to industry figures.

Via Reuters