Tata Motors planning to start manufacturing unit in Indonesia & South America
Tata Motors has revealed its plans regarding the establishment of new manufacturing units in countries like Indonesia and South America. The company is setting up its assembly units in these countries in an awe to cosolidate its position in export market. India hasn't been a favourable market for the company last year in terms of sales figures, owing to constant depreciating rupee value and ever growing input costs. Therefore, Tata Motors is willing to eradicate the adverse effect of Indian sales by improving its export figures.
Managing Director of Tata Motors, Karl Slym, commented on the same, " “We started our business in Indonesia about two months ago by importing completely-built units (CBU). We would like to manufacture in Indonesia eventually because of the size of the market. Our phrase is ‘build where you sell’ and that is often the most economical way.” He further added, “We are not in South America, so that’s an obvious attraction. Building where you sell makes most sense, especially in South America. We don’t have a plant, however, the market is on our radar. The economic downturn in India tells us that if you are dependent only on one country, you get more hurt than others. Currently, only five per cent of our sales are outside India, so we have a very strong focus on going global."
Until now, Malaysia used to get Tata vehicle via Tata's Thailand manufacturing unit. Moreover, company's smallest car, Tata Nano, is also being tested in the same country for quite a while now. On the other hand, South America is a totally new paradise for the Indian based motoring firm and it promises to be a larger market than some of the other countries. Therefore, for the same purpose, Tata Motors officials also had a formal meeting with the external affairs ministry last year.