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Our Bureau

New Delhi , Jan. 16

TATA Motors is exploring the possibilities of pushing forward its exports performance through new overseas acquisitions and by entering into alliances in countries where it currently does not have a presence.

The company plans to use the Daewoo Heavy Vehicles plant in Korea, which it is negotiating to acquire, to make a foray into the Korean market. It is also planning to enter other European and African markets with its Indica. But unlike the Indica's UK launch, where it was badged as a Rover, Tata Motors hopes to use Rover's distribution network in other European countries to market the Indica under the same name.

Speaking about the company's plans, Mr Ratan Tata said that Tata Motors has already shipped the first batch of 5,000 cars to Rover in the UK and will soon commence marketing the car under the Indica brand in other European countries. Tata Motors is hoping to leverage its marketing arrangement with Rover for this purpose.

Talking about the Daewoo acquisition, Mr Tata said that Tata Motors has been negotiating the acquisition of the Daewoo Heavy Vehicles plant in Korea. He said that the Daewoo plant and products manufactured there cater to about 26 per cent of the Korean market for CVs.

"Over time we plan to rebadge these vehicles under the Tata brand," he added. The benefits of the Daewoo acquisition will be available to the company in the next few months, he said.

Tata Motors is also looking at investing more funds for the development of new engines and new products in the next few years. The first issue, that is likely to find increased development efforts from the company's side, is the need for bigger, more powerful and yet less polluting engines.

Elaborating on the company's plans, Mr Tata said that with the increase in the country's highways network and the rise in sales of larger commercial vehicles, Tata Motors will be looking at developing engines that are more powerful. He also said that the company is looking at developing diesel engines with common rail direct injection for application in its passenger cars.

"We are looking at common rail injection engines since that seems to be the way forward," he said. However, he added that while the company may source technology and expertise from outside for the purpose, it will not tie-up or ally with any technology provider for the purpose. Common rail injection engines will be required for meeting the Euro III emission norms that are scheduled to come into force by April 2005.

Mr Tata also confirmed that the company is not looking at launching a new vehicle in the premium mid-size segment at any time in the near future. Tata Motors had earlier planned to launch the Tata Magna, a premium C segment car. The company is also planning to exit the car retailing joint venture Concorde Motors.

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