Last month the Thai army took control of law and order in the country following a split between political divisions after Constitutional Court removed caretaker Prime Minister Yingluck Shinawatra from government. Despite these constraints, Tata Motors wishes to expand their reach in Thailand which is looked upon as Southeast Asia’s largest vehicle manufacturing center.
While other global automakers like Honda and Toyota are holding back on investments, Tata Motors is poised to see the market turn around and looks upon this investment into Thailand as a stepping stone into other countries in Southeast Asia. Tata Motors is aiming to increase their market share in Thailand, where 9 out of 10 cars sold is a Japanese brand. This development might prove to be a turning point for Tata Motors in Thailand.
Tata Motors plans to increase dealership base to 70+ in Thailand over the next year while the company will also concentrate on import of commercial trucks from South Korea and India. Tata Motors also hopes that the middle class in Thailand will find the Nano, world’s cheapest car highly attractive once it is launched.
This step is being taken by Tata Motors as Thailand, despite political upheaval, continues to be at the forefront where car and electronic manufacturing is concerned. The country has witnessed many coups in the past and emerged victorious with its economy expected to increase between 3.5% and 4.5% in 2014.