Tata Motors is swiftly sharpening its wings to cross over the sea to safely land at Mexico and North America. This, the company hopes, will enrich its coffers and consequently there is a dialogue with Mexico based Metalsa SA de CV to avail a contract for manufacturing. If anything desirable materialized, then Tata Motors will ignite its presence with the making of Indica Vista [images], Indigo Manza [images] and Nano. The move follows a visit by the team of officials from Tata to Mexico recently. Tata’s strategy of entering into manufacturing arrangement replicates its entry into the small car segment.
In 2008 the company could secure its entry into South Africa after getting due share from Nissan Motor for an assembly unit there. Mexico’s Metalsa is a subsidiary of Grupo Proeza which manufactures passenger cars and commercial cars. The group is a private corporate involved in the activities of automotive, foundry, juices and fruits, information technology and healthcare. In India, it is Metalsa India Pvt Ltd, doing business of chassis and oil pump with Tata Motors’ trucks of heavy and medium range.
Tata has been waiting for a right occasion to enter into the Latin American region and the move with Metalsa is a fresh lease of hope. Metalsa is present in the regions of Argentina, Australia, Brazil, Canada, Japan, Mexico, the US and the UK. Hence Tata foresees a great penetration into these areas through the rapport with Metalsa. Meanwhile, Tata has asked its vendors and suppliers to explore the creation of bases in Mexico and certain other markets. Tata’s priority is to seek an ideal market for ideal product, and there is nothing new in its approach in this regard, said its spokesman. However, Tata has not fixed any time frame for finalizing this arrangement.
Analysts see the move of Tata as a direction to land on the US market, by taking advantage of North American Free Trade Agreement. This agreement envisages flexible restrictions in terms of tax and duties among the US, Canada, and Mexico. Tata sees the potential of the US as the world’s largest pick-up market and is in the process of launching its Xenon [images] coming on Tata Safari [images] platform along with LCVs like Ace. Tata has been now and then referring to its logical move towards entry into newer geographical areas, of select geographics.
Also in the talks is the presence in the Association of Southeast Asian Nations markets. Already Tata has an arrangement contract with Thornburi Automotive Assembly of Thailand for making pick-ups and vehicles coming under Ace platform. Nano will follow the suit there and in South Africa soon, it is learnt. In addition, Tata will make its presence through Nano in Brazil, Romania, Turkey and certain regions of Eastern Europe. There will be, according to the company, more Nanos in the world market surpassing the domestic market. For this Tata has allocated the facility of Sanand for export market and Pantnagar unit for domestic market.
Tata is doing overseas business in the countries of Europe, Africa, West Asia, South-East Asia, South Asia and South America. Further it is present in the UK, South Korea and Spain under subsidiaries and associate companies.