Tata Delays Plans of Building Plant in Thailand image

As Tata tries to deal with a drop in demand it has decided to postpone the development of the new facility in Thailand.

Tata announced it will enter the passenger car market in Thailand during the third quarter, when it will introduce the Nano budget vehicle. At the end of last year announced it plans to expand in the ASEAN region by building an assembly plant either in Thailand or Indonesia, with a maximum production capacity of 60, 000 vehicles annually.

The company’s next announcement regarding this issue was that it chose Thailand and that the plant was to be build by 2016. Recently, Karl Slym, Managing Director, Tata Motors, said that sales should reach at least 20,000 units annually for this investment to be worth. The automaker said that since 2008 it has managed to put on Thailand’s roads more than 17,000 vehicles.

Currently Tata has two vehicles that are assembled in this market at the Thonburi Automotive Assembly Plant in Samut Prakarn and although the automaker wants to increase sales in Thailand, this should not be made too swiftly, said Slym.

“We are introducing several Tata products. The distribution network comprises about 40 dealers. We plan to have over 50 dedicated Tata dealerships by the year-end,” said a Tata Motor Official.

Source: thehindubusinessline.com