Tata Motors to hawk Daewoo trucks in Middle East, Far East

Tata Motors will be hawking Daewoo Commercial Vehicle trucks in the Middle East and the Far East, Tata Motors chairman Ratan Tata told a visiting group of Indian journalists here.

The Daewoo CV acquisition had been widely perceived as Tata Motors' big ticket into the Chinese and southeast Asian markets.

"We have always been eyeing these markets. The Tata-Cummins joint venture was also formed with the same idea. Daewoo CV has given us a readymade opportunity to address these markets. This acquisition has given us a product line that we did not have, an association with a much admired work culture and a foothold in Asia in terms of a place to manufacture," Tata explained.

Asked what the main challenges were in running Daewoo Commercial Vehicles, Tata replied: "The main challenge will be to not 'Indianise' the company. The company and the country have certain strengths. We want to enhance them and not take them away."

On Tata Motors' Rs 1 lakh car project, a brainchild of the group's chairman, Tata said that the company was exploring the possibility of using plastics for the car, since steel prices had risen sharply. Even where steel is used options like using an adhesive instead of welding are being considered, he explained, to keep the lid on costs.

Tata also confirmed that the group would be seeking to buy both commercial vehicle as well as passenger car companies. Tata Motors is open to acquiring facilities, going concerns or even sub-assemblies where the products will complement the existing Tata Motors range, said Tata.

The Tata Motors board recently decided to raise $ 500 million in the overseas market to fund its 'long term growth.' Tata explained that these funds would be used for various projects that Tata Motors had and for other acquisition options.

"Five or six years ago we couldn't have undertaken the Daewoo CV acquisition. The financial system then wouldn't have let us do it this fast and this readily," said Tata.