Tata Motors to open new car plant in Venezuela
Many Indian car makers are expanding their base to South American continent. Mahindra have a car assembly plant in Manaus ,Brazil, Hero MotoCorp recently started work on a two-wheeler plant in Colombia and Maruti Suzuki is expanding major exports to South America. Now, another Indian auto major, Tata Motors is also jumping onto the global expansion band-wagon with a new full fledged car assembly plant in Venezuela.
Eager to make its presence felt in the South American car market, automakers in India are going full steam ahead with their expansion plans. Tata Motors is keen to re-position itself in home markets with a host of new launches up ahead but is also equally ambitious where its overseas expansion plans are concerned.
With Tata Motors having 9 commercial vehicle plants overseas but none for passenger cars, the company is setting up an exclusive passenger car assembly plant in Venezuela in association with a local partner. Initially the Manza sedan and Indica eV2 models will be brought into the country via completely knock down kits (from India) which will be later manufactured at the Venezuelan plant. The plant is slated for completion by September this year and will have initial capacity of 20,000 units per annum.
Tata Motors has already been present in the Venezuelan market. They had launched their Indica hatchback and Indigo sedan in 2007, while Nano too was launched at a later date. They already have an established dealer network and with the new car plant, they now aim at offering Tata cars in Venezuela at an even more affordable price.
Tata Motors is well aware of the enormous opportunity in venturing into South America considering the fact that Brazil is a leading market followed by Argentina, Chile and Colombia. Many Indian vehicles have made their mark in the region and are growing in importance while a new production site will enable Tata Motors to expand their global presence significantly.