Tata's Nano, Ace to roll out of Brazil, Indonesia, East Europe by next year

Our Bureau Mumbai | Updated on November 13, 2017


World's cheapest car Tata Motors' Nano and the company's popular light commercial vehicle (LCV) Ace are set to roll out from new factories around the world, as early as next year.

In order to increase global penetration, Tata Motors is planning to set up assembly operations in Indonesia and Brazil, apart from Eastern Europe, Mr Ratan Tata, Tata Motors' Chairman, told shareholders at the automaker's annual general meeting (AGM) here on Friday.

“We are looking at assembly facility for passenger vehicles in South-East Asia (Indonesia) and some parts of Eastern Europe. We're looking at how to maximise penetration for the Nano and the Ace,” he said “We're also looking at Latin America (Brazil). We plan to grow both in India and in other countries.”

Mr Carl-Peter Forster, Tata Motors' Managing Director and Group Chief Executive Officer, told Business Line on the sidelines of the AGM that the company's global assembly plans, starting with Indonesia, could begin “likely by next year.”

To counter the erratic domestic monthly sales performance of the Nano (between 3,000-7,000 units on average and peak of 10,012 units in April, 2011), the company has started exports, starting with Sri Lanka and Nepal. It is also starting solo Nano distribution centres in smaller towns. Total domestic sales of the Nano has crossed one lakh units since the 2009 launch, but the company's 2.5 lakh unit per annum capacity plant at Sanand is currently lying under-utilised.

Asked by shareholders about the future of its manufacturing and distribution joint venture with Fiat in India, Mr Tata said both Fiat and Tata Motors are “re-looking at the contractual obligations, in order to make it more realistic for both parties.”

“Yes, it is showing losses. The venture was setup with the assumption that we will manufacture together and market their products … the volumes did not work because of the downturn and did not take off the way we thought,” he said.

Mr Tata said that the company is taking several steps to increase its market share. These include more advertising, innovative marketing strategies and increasing its dealer network especially in smaller towns and rural areas.

On global new product plans, he said that both Tata Motors and Jaguar Land Rover are working on hybrid and electric cars. Tata Motors will be launching an electric car in UK and Norway soon, a small city car based on Pixel concept which will have to both electric and petrol power trains.

Published on August 12, 2011

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