Tata Motors eyes to spread Nano production to Jakarta
Tata Motors has reportedly initiated talks with an Indonesian automobile company to produce its low cost car Tata Nano there. Earlier, the Indian auto giant had plans to start Tata Nano production in Thailand. Tata is currently producing Tata Xenon and Tata Ace commercial trucks at Samut Prakanin in Thailand since 2009 and thus it also wanted to produce Tata Nano there as well but things did not work out. Also, Indonesia offered more incentives to Tata to bring Tata Nano there, said sources. Thus, Tata shelved the expansion plans to Thailand and has almost decided to produce Tata Nano in Indonesia.
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Reportedly Tata India is in talks with PT Astra International which is one of the leading auto makers of Indonesia. Meanwhile, sources also added that the decision to rethink on expansion plans in Thailand was taken in the backdrop of lack of political stability and discouraging automobile tax structure of Thailand. Earlier Tata was in the process of making an eco-friendly car in Thailand as well.
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However, even after shelving the plans to produce Tata Nano in Thailand, Tata will introduce the car at the Thailand International Motor Expo and would deliver Nano early next year, sources add. The made-for-Thailand Tata Nano will be a 600-cc car and will have a top speed of 120 kmph compared to existing 105 kmph besides air conditioning and power windows as part of the standard equipment. The Tata Nano for Thailand could be the Tata Nano Europa that will be pitched in against Nissan March and Honda Brio eco cars. As per initial information Tata will be producing 50,000 Nanos annually at the plant located in Indonesian capital Jakarta. The production will start in 2013. The Tata Nanos produced at Jakarta will be exported to Thailand, Malaysia and the Philippines which have great demand for small cars.
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