Tata Motors is considering building a manufacturing unit in Indonesia which will be used to manufacture the famous Tata Nano model. According to Indian motoring sources, the plan is under “constant vigilance” by the various study teams. The report cited a Tata spokesperson as saying “Yes, we will be establishing a manufacturing unit in Jakarta. We will be announcing this piece of news shortly, but till then it is all under wraps.”
Indiandrives.com said the plan is basically to get a foothold in the large, as yet untapped markets, beginning with Indonesia. The next step is thought to include Malaysia, Philippines and Thailand.
If the reports are right, the decision will have been influenced by surging sales figures of light vehicles which expanded to 2.23 million units up 36 per cent, according to an Asian Automotive market report by JD Power and Associates in January this year.
This plan is expected to take “a definite shape” in the 2013 financial year. Once they establish production of Tata Nano, the company is then likely to start manufacturing the Tata Ace side by side. It is expected that this manufacturing unit will be capable of generating 50,000 units per year. Supplier are said to have already given quotations.
Currently, the company is planning to output between 12,000 and 15000 Tato Nano model a month in its Sanand, Gujarat plant from March 2011 onwards, according to Indiandrives.com.