The Tata Motors has made an official announcement to stop production works in Thailand. The Tata Motors has resolved to this decision as a part of the Tata Motor’s turnaround 2.0 strategy which mainly focuses on delivering consistent, competitive and cash accretive growth. However the automaker company said, “We shall continue to address the Thailand market with a revamped product portfolio that suits the local needs, and will deliver through a CBU distribution model.” Besides that Tata will retail mini trucks in Thailand by exporting the vehicles from India.
The auto markets of Thailand will get the productions of the Tata through imports. The manufacturer has received losses up to Rs 170 crores in its business in the Thailand markets because of sub scale and unsustainable business in those regions. Therefore Tata decides to cease its manufacturing operations in Thailand. Tata Motors Thailand had begun its manufacturing operations back in the beginning of the year 2008. Tata had joined hands with the Thonburi Automotive Assembly Group in order to set up their business in Thailand. A variety of commercial automobiles are sold by the company in the Thailand regions which includes the one tonne Xenon pick-ups, Super Ace Mint, Alta medium duty truck and Novus range of heavy duty commercial vehicles.
In a statement, The Tata Motors said, “As part of this ongoing review, we have undertaken a reassessment of our business model in Thailand to endure it is sustainable over the long term. The business as it stands today is sub-scale and not sustainable. We have hence decoded to cease the current manufacturing operation in this financial year.” The company further reported, “Tata Motors is committed to the ASEAN region wherein Thailand is an important market and the company endeavours to continue serving customers as it transitions to the new operating model.”
PTI quoted Tata Motors Group CFO, P Balaji saying, “It was becoming unviable business for us. Therefore, we decided to cease manufacturing operations.”
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