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Tata Motors has entered the Vietnam market by signing a distribution agreement for commercial vehicles with TMT Joint Stock Company.
This follows the Indian company’s recent ventures in the Asean region, including Indonesia, the Philippines and Malaysia. Tata Motors will supply completely knocked down (CKD) vehicles and completely built units (CBU) to TMT.
The deal, which also includes technology licence and supply agreements, will help TMT expand its vehicle assembly business and distribution network in Vietnam, the company said in a statement.
“Our foray into Vietnam is an important step in our continuing journey to become a global player and in particular our focus on the Asean region,” said Tata Motors Executive Director (Commercial Vehicles Business Unit) Ravi Pisharody.
In April last year, Tata Motors entered the Philippines market by exporting passenger and commercial vehicles such as the Manza sedan and Xenon pickup trucks.
In April 2012, Tata Motors signed an agreement with DRB-HICOM in Malaysia and later in 2013 it launched a range of passenger cars in Indonesia through a wholly-owned subsidiary.
The company is currently assessing options to introduce a slew of products over the coming years in Vietnam.
TMT is into manufacturing, assembly and distribution of commercial vehicles in Vietnam, while Tata Motors is India’s largest automobile company with consolidated revenue of ₹2,32,834 crore ($38.9 billion) in 2013-14.
“It is indeed an honour for us that Tata Motors, known to be among the world’s top truck and bus manufacturers, has chosen to partner with TMT JSC to start this new chapter in their engagement with the Vietnam market,” said TMT Chairman Bui Van Huu.
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