Tata Motors Plans to Strengthen its Exports Market
Published On Sep 14, 2016
In order to cushion itself from the impact at the domestic front, Tata Motors, the market leader in commercial vehicles (CVs), is planning to expand its foothold in the international market. The company will soon be amplifying the export of its commercial vehicles, and has expanded itself in smaller markets across the globe. According to Ravindra Pisharody, Executive Director, Commercial Vehicles, Tata is looking forward to double its overseas sales in the next two years. The CV maker had exported 50,000 units in the last fiscal year.
In an interview with Livemint, an online magazine, Mr. Pisharody said, “Besides defence, exports is an important pillar to hedge ourselves from the cyclical swings in the domestic market.” The company will be strengthening its three-year-old presence in Vietnam and focusing on newer grounds such as Tunisia in North Africa. Tata is also expanding itself in smaller, promising markets such as Chile, Venezuela, and Bolivia and making headways in Middle East, Africa and Latin America. Eastern Europe is another region where the company wants to spread its roots.
The CV maker is aiming to strengthen its local presence in seven to eight markets over the next two years including the existing ones in Thailand and Bangladesh.
With the CV market scenario in India not that bright, Tata is treading choppy waters at the domestic front (the company’s Q1 profit fell by more than half). Tata is also facing uncertainty in Brazil (with was once its lead market) due to currency fluctuations. Mr. Pisharody says that the company plans to strengthen its local presence in markets like Africa, the Middle East and Vietnam due to local regulations and levy of duty tariffs. Also, this will include tying up with a local distributor for establishing a company-owned assembly facility.