Tatas ink pact for pick-up unit in Thailand

Tata Motors has entered into an agreement with the Thailand-based Thai Rung Union Car Plc (TRU) to set up a manufacturing unit for pick-ups in Thailand.

The focus will be on ASEAN region. India's largest vehicle manufacturer is also exploring the possibilities of setting up a production base for hybrid and low-cost small cars from the region.

Tata Motors plans to manufacture its pick-up "" 207 DI - from Thailand, which would be fitted with a 140 BHP output engine, that conforms to the Euro-III norms. The vehicles will be redesigned by TRU to suit the needs and environment of the country.

The companies are positioning it as a competitor to Toyota, the only other pick-up manufacturer in that country, sources close to the deal told Business Standard here today.

The financial aspects of the agreement were not revealed. Tata Motors officials declined to comment on the development, but said the company was looking at entering into joint ventures in many countries, including Thailand.

The company is also looking at manufacturing hybrid and low-energy cars from Thailand, details of which were not immediately known. TRU, a Stock Exchange of Thailand-listed company, is the largest pick-up truck modifier there.

The Tatas intend to unveil Tata 207 at a Motor Show, scheduled to take place in March 2006, and begin production "soon after". It expects to sell around 5,000-10,000 units in the first year of operations.

The agreement will enable Tata Motors to foray into Thailand, which is the largest market for pick-ups outside the US. It will be able to expand to other countries in the ASEAN region, as Thailand is hailed as the gateway to countries in south-east Asia.

Tata Motors had initially planned to set up an assembling unit for pick-ups in Thailand and move completely knocked down (CKD) units for assembling.

With this agreement, the Tata group company would foray into both assembling and manufacturing of vehicles from the region, sources said.

The Tata group was planning to enter into partnership deals with companies in the region. It wanted to set up a joint venture on the line of the existing one in South Korea where the Tatas had tied-up with Daewoo for manufacturing of trucks.

It was also "willing to go solo with a significant investment", if the government of Thailand was willing to permit it set up operations in that country.