Tata Motors gears up for Ace exports

After the global launch of its one-tonne mini-truck Ace in Sri Lanka in May, commercial vehicle major Tata Motors is readying for exports of the vehicle to other overseas markets such as Bangladesh, Africa, South Korea, West Asia (Gulf) and CIS countries, said sources close to the company. The launch in some of these markets is expected to take place by 2008.

The company has also been getting orders from developed countries such as the US and Western Europe, the sources said. "Tata Motors' first priority will be to serve the domestic market. However, the company intends to export the Ace in smaller volumes to Bangladesh, South Africa and Korea. It is easier to launch a potential model in those markets where the company's commercial and passenger vehicles are already present," said a source.

Senior Tata Motors officials were unavailable for comments. An official spokesperson of the company said, "There are countries which are keen on introducing our vehicles. We have no comments to make on specific export plans."

In a bid to meet the huge domestic and international demand, Tata Motors has doubled the capacity at its Pune facility to 60,000. The company is believed to invest further in setting up a 2 lakh plus facility in northern India by mid-2007.

"The reason for the popularity of the Ace is factors such as looks, pricing and efficiency, which were lacking in the light commercial vehicle segment so far. Even the international market has accepted it to be a unique product," said a Mumbai-based auto analyst.

The Ace is powered by a small and efficient unique twin cylinder 16PS IDI 700cc diesel engine, and is priced at Rs 2.46 lakh. Suitable for both rural and urban use, it has the ability to carry a variety of payloads and has the agility to navigate narrow by-lanes with its turning radius of 4.3 metres. It has sporty car-like features to ensure comfort in ride and handling.

Within six months of its launch, the Ace's success has forced other auto firms to enter the segment. By mid-2008, the Ace will have to compete with at least five more brands.

This is expected to spiral its price downwards, say analysts. Tata Motors launched the Ace in Sri Lanka in May "� exactly one year after its launch in the domestic market.