As per Tata Motors ‘6-cylinder strategy’, operations and growth is attuned to deliver consistent, competitive and cash accretive growth. Of the six pillars of growth, one caters to ‘ Net Debt and Subsidiaries’.
Following an ongoing review, Tata Motors Thailand operations have been reassessed in purview of the company’s global business model. This brings into question long term sustainability of Tata Motors Thailand ops. In its current evaluation, the Thai business is sub-scale and not sustainable.
Keeping this in mind, Tata has decided to shut shop in Thailand. However, this is only in regard to manufacturing. Going forward, the Company will continue operating in the Thailand market through a revamped product portfolio that caters to local vehicle needs. Cars sold in the Thai market be delivered through a CBU distribution model.
Tata Motors reiterates its commitment to the ASEAN region, of which the Thailand market is an important one. The auto manufacturer will continue to serve customers here as it transitions to the new operating model (CBU). Keeping in mind the import model, Tata cars will inadvertently be costlier for Thai customers.
Earlier today, Tata Motors announced its financial results for the quarter ending June, 2018. Tata Motors Group Q1 FY 19: Revenue Rs 67.1 K Cr (+14%) and Loss after Tax Rs 1.9k crores.
Natarajan Chandrasekaran, Chairman commented, “I am delighted with the progress made by the domestic business on their ‘Turnaround 2.0’ strategy. We continue to gain market share while strongly improving profitability in both Commercial Vehicles and Passenger Vehicles. Our drive for increased transparency continues with separate segmental results for CV and PV businesses from this quarter. I believe that with our focused efforts we are well positioned to ‘Win Decisively’ in CV and ‘Win Sustainably’ in PV”.
