Tata Motors, Thonburi in 70:30 JV
* Tatas looking to launch a new pick-up by Sept-Oct * Aims at sales of 30,000 vehicles in next 3 years
Automotive major Tata Motors on Monday announced the formation of a 70:30 joint venture with Thailand-based Thonburi Automotive Assembly Plant Co to manufacture, assemble and market pickup trucks with one-tonne capacity.
Thailand is one of the world’s most significant markets for pickups after the US. "The joint venture will invest Rs 120 crore which will be utilised for setting up the required tools and fixtures for manufacturing the new ‘Space Cab’ version," Tata Motors managing director Ravi Kant said.
The JV will start production in 10-11 months, followed by the marketing of vehicles, he added. Tata Motors at present makes the ‘Ace’ in India, a pickup vehicle with a lower tonnage of 0.75 tonne. ‘Space Cab’ will currently have a 3-litre Dicor engine but there is also the possibility of using other engines (Fiat engines) for it, Kant added.
This is the second overseas venture of Tata Motors in the auto sector after the company acquired the truck unit of South Korean company Daewoo, Daewoo Commercial Vehicle Company, in March 2004 for Rs 459 crore. The car plant of ailing Daewoo was taken over by General Motors.
The Tata Motors scrip ended Monday with a gain of Rs 31 (3.61%) on the Bombay Stock Exchange, at Rs 888.80 with volumes of 3.46 lakh shares.
Thonburi, with over 2000 employees, is one of the largest independent assemblers in Thailand and currently assembles passenger cars for Mercedes Benz. It produced 4,150 passenger cars and 250 buses in 2005 with net revenues of $208 million. The group has served Thai automotive market as importer, distributor, retailer, assembler, body builder, mass transportation services provider and supplier and contractor for military vehicles. It also has businesses in insurance, vehicle leasing and financial services.
Joining Hands
• The JV will invest Rs 120 cr which will be utilised for setting up the tools and fixtures for manufacturing the new ‘Space Cab’ version
• Production to start in 10-11 months, followed by the marketing
• Tata Motors scrip ended with a gain of Rs 31 (3.61%) on BSE at Rs 888.80 with volumes of 3.46 lakh shares
Kant said that Tata Motors was also open to the option of extending the scope of the joint venture beyond pick-ups. "We are starting with pick-ups and depending on its success, the company might look at other products as well," he said. The company was looking at sales of 30,000 vehicles in the next three years, Kant added.
"We have been looking at Thailand for the past two years as it is one of the most important markets in Asia and the second largest after US with sales of 4.5 lakh units annually," he said. Kant said that the company was looking at launching the new pick-up in the next calendar year. "We are looking at launching the new pick-up in the next calendar year by September or October, " he said.
Source:
