Nitol group keen on Nano assembly unit in Bangladesh

With the Nano all set to hit the Bangladesh roads this February, the distributor of the Tata cars there, now plans to open talks with the Mumbai-based auto major to set up an assembly unit of the small car.

Tata Nano 2012

“Bangladesh is a viable economy. We will grow very fast here. Therefore as soon as we introduce the vehicle, in two moths we will have an idea about the market. Then we will start negotiating with Tata for the assembly plant,” Abdul Matlub Ahmed, Chairman of Nitol Group, distributor of the Tata Motors in Bangladesh said.

The Bangladeshi company has finalised the deal with Tata Motors to import and sell the Tata Nano in the country.

“We are expecting to introduce Nano in Bangladesh sometime in February. We will import about 2,000 Nano cars in the first year for the Bangladesh market. We are importing all the models and will see the market response. Then we will finally decide on the import programme on the basis of demand. Our idea is to reach at least 10,000 a year in the next couple of years,” Ahmed said.

The vehicle was scheduled to be launched in Bangladesh in October last year, but it got delayed following some pricing issues.

As high import duty will cost the common man's car about Tk 6.5 lakh (Rs 3.8 lakh), the distributor wants the car to be assembled in Bangladesh.

“Definitely an assembly unit here will be cost effective. But we are not sure about the logistics part the and the fresh investment required to make. We will have to do a lot of study,” he said.

However, Tata's spokesman declined to comment on whether the auto major has any plan to come up with an assembly unit in Bangladesh.

Although the company did not give any timeline, Tata Motors had earlier said, it was considering the option of assembling the Nano abroad through export of completely knocked down units (CKD).

The home-grown auto major started exports of completely built units (CBU) of the Nano to Sri Lanka and Nepal last year. Between April and November 2011, Tata Motors exported 1,728 units of the small car.

Apart from Bangladesh, the company plans to export the car to other Asian countries like Thailand, Indonesia, Mayanmar. It is also working on an upgraded version of the Nano for the developed markets in the US and Europe.

The car has also reportedly evinced interest from some overseas companies like the Teco Group of Taiwan, which has expressed keenness to manufacture and sell the vehicle in the respective countries.

Source: Business Standard

Tata Motors to drive into Indonesia with Ace

Tata Ace

The next international stop for automobile giant Tata Motors is Indonesia where it plans to soon start assembly of the successful Ace range of light commercial vehicles.

“We are looking at Indonesia quite seriously which, in several ways, is a replica of the Indian market,” P. M. Telang, Managing Director (India Operations), Tata Motors, told The Hindu in an interview in Mumbai last week.

Asked if it will be a full scale manufacturing venture or only an assembly plant, Mr. Telang said: “It is always step-by-step. Assembly is the first step and we do see local content ratio rising rapidly as ASEAN has good amount of component infrastructure. So, we see good possibilities of growth.”

While confirming that the plan was in the near-term horizon, Mr. Telang refused to say which of the vehicles from Tata Motors' stable will be assembled in Indonesia.

A top official of the company, however, said that the Ace will be the first model that the company would assemble in the Southeast Asian country. “This will be followed by passenger vehicles,” the official said. The knocked down kits of Ace meant for assembly in Indonesia will be supplied from India. Tata Motors launched the Ace branded as “Ace Super City Giant” in Thailand in November 2010. It has an assembly plant in Bangkok as a joint venture with the Thonburi Group which assembles pick-up trucks for the Thai market.

Diesel debate

Asked about the debate over diesel cars and the government toying with the idea of imposing an extra tax on such cars, Mr. Telang said: “Diesel cars are 25-30 per cent more fuel-efficient than petrol cars. When you are looking at the rising energy bill of the country, diesel cars make eminent sense.” He pointed to a study done by the Society of Indian Automobile Manufacturers (SIAM) which showed that private diesel use is less than 1 per cent of the total consumption of diesel in the country. “I think the issue is being blown out of proportion,” he said.

Source: The Hindu

New Tata Vista Sedan Class launched in Nepal

After receiving outstanding response and success in India, Tata Motors launched Tata Vista Sedan Class in Nepal on Tuesday.

Tata Vista Sedan Class

"With an aim to create a new breed which reinvents the conventional hatchback with an exquisite class of a sedan, the all new Vista Sedan Class has been given a complete makeover," Spiradi Trading, the authorized distributors of Tata Motors for Nepal, said in a statement.

According to the statement, Vista Sedan Class is all set to redefine the attributes of space, style, comfort, safety and fuel efficiency across all existing hatchbacks forever.

"The all new Vista showcases the progresses Tata Motors has made over the last several years of its first outing in the passenger car business in terms of design, quality, performance, technology and refinement. Compared to the other offerings in the market, the new vehicle is a significant set up over the previous generation and in line with other world class offerings," the statement added.

The Sedan has a complete new skin, height adjustable driver´s seat, tilt adjustable steering wheel, utility space in the floor console under the seat, deep glove box which can accommodate laptop, tubeless tyre, a new twist beam suspension, gas filled shock absorbers, among others.

The new Sedan comes with new features like dual SRS airbags, ABS with EBD assisted brakes, electrically controlled ORVMs, double din music system with Bluetooth and auxiliary input with steering controls, dual tone alloy wheels and keyless entry.

"The new sedan stands out from other vehicle because of its complete front design change which looks similar to Manza. New triple barrel headlamps, new grille and fog lamps now lend a classier and modern touch to the appearance up front," said the statement.

The car is powered by a range of internationally acclaimed power trains -- the new 1.3 liter Quadrajet Common Rail diesel engine and the 1.4 liter Safire MPF petrol engine manufactured by Fiat-Tata joint venture.

Siradi is providing 24 months or 7500 km warranty on Vista Sedan Class. The car is being launched at an introductory price ranging from Rs 1.89 million to Rs 2.64 million.

Source: Republica

Tata Plans to Export Nano to Bangladesh, Southeast Asia

Tata Nano

Tata Motors Ltd. plans to export its Nano minicars to Bangladesh, Thailand, Indonesia and Myanmar, the company's India managing director P.M. Telang told reporters Friday.

He didn't give any timeframe for the exports.

Mr. Telang added that the company is likely to take a decision in the next three or four months on setting up a second commercial vehicle assembly plant overseas.

It now has a plant in South Africa for assembling such vehicles.

Separately, Ravi Pisharody, president of Tata's commercial vehicle business unit, said the company plans to introduce a new range of light trucks in India.

"The new range may co-exist with Tata Motors' existing range of commercial vehicles," he added.

Source: The Wall Street Journal

Tata Nano may enter Indonesia via contract manufacturing route

Move will help Tata Motors share risks, expedite project; earlier plan was to set up a greenfield unit.

Tata Motors Ltd, India’s largest automobile company by revenue, may enter the Indonesian market by striking a contract manufacturing deal with a local company, according to four people familiar with the company’s plans who did not want to be identified.

This is similar to the model adopted by the company in Thailand, where it formed an alliance with Thonburi Automotive Assembly Plant Co. Ltd, an independent assembler of automobiles.

Tata Motors earlier had plans to set up a greenfield unit in Indonesia to make the Nano small car and Ace mini truck.

A spokesperson for Tata Motors said the company is in the process of crystalizing its plans for Indonesia and that “the products to be included or the manufacturing route to be adopted is being discussed”.

Two of the people familiar with the matter said theapproach was a low-risk one that would entail a lower investment and also help the company quickly launch its products.

After the tepid response in the home market to the car (Nano), the company doesn’t intend to invest too much,” said one.

The contract manufacturing route, another said, would not only help the firm share risk in terms of investment but also expedite the project. A third person familiar with the matter said Tata Motors is currently in talks with a few companies in Indonesia.

The move makes sense, said an expert.

“Given the current global environment, when manufacturers have redundant capacities, it makes sense for Indian auto makers like Tata Motors and Mahindra and Mahindra Ltd, which are looking at getting a foothold in the region, to opt for this route as opposed to a greenfield unit,“ said Vikas Sehgal, managing director and global head of the automotive practice at financial advisory firm Rothschild.

LMC Automotive Ltd, an automotive sales and forecasting firm, estimates the Indonesian market for light vehicles (those below 6 tonnes) to expand 16% to 792,000 units by the end of the current calendar year, over the previous year. This is expected to further go up to 1.148 million units in 2014, by which time the country will overtake Thailand to become the biggest light-vehicles market in South-East Asia.



LMC projects Thailand’s sales volumes to reach 1.145 million units that year. It expects the sales gap between the two markets to continue to widen owing to higher growth potential in Indonesia. By 2018, 1.59 million light vehicles will be sold in Indonesia against Thailand’s 1.36 million.

The fourth person familiar with the matter said production at the chosen contract manufacturer will likely commence in the second quarter of fiscal 2012-13 and that in the first year, the plan is to produce 100,000 units of Ace and Nano.

Tata’s move in Indonesia comes at a time when the country’s government is in the process of finalizing a policy to incentivize companies to build small, fuel-efficient cars.

This is along the lines of Thailand’s Eco car project that has attracted companies such as Toyota Motor Corp., Honda Motor Co. Ltd and Suzuki Motor Corp.

For Tata Motors, which opted out of the Eco car project, there’s an opportunity in Indonesia to participate in the project with its Nano model, said Puneet Gupta, an analyst at IHS Automotive, a forecasting firm.

Source: Live Mint

Scoop: Tata Aria Left Hand Driver sans AT

Tata Motors’ flagship product, the Tata Aria Crossover is headed for markets abroad and here’s definitive proof as our roving eye in the sky, EarthFusion swooped down on an on-test Tata Aria LHD. The left hand drive version of the Aria however did not feature an automatic gearbox. So the same five speed manual gearbox might be what the export version of the Aria could feature although we do know for a fact that Tata is working on an automatic transmission for the Aria.

The Aria LHD’s interiors as well as the exteriors did not show any visible changes from the current Aria. Also, we expect the same 140 Bhp-320 Nm 2.2 Liter DICOR turbodiesel engine equipped with a dual mass flywheel to do duty in the Aria. The Tata Aria has been a sales dud in the domestic market and could do well if Tata repositions the Crossover with a price drop. Perhaps, the move to sell the Aria in developed markets will bring in the desired volumes for Tata Motors.

Talking about the export markets, both the Tata Safari SUV and the Tata Xenon pick up are decent sellers for Tata in export markets around the world and the Aria could follow in these vehicles’ tyre marks. The Tata Aria is now available with a discount of close to INR 2 Lakhs, which makes it a superb proposition for folks wanting a roomy and capable crossover which is extremely comfortable too.

This discounted price of the Aria, currently being called a December offer might extend into the next few months as the Aria is simply not selling at the original price it was positioned at. Al said, the Aria does have a lot of positives going for it like the  interiors, which is the best ever on a Tata car. The Aria feels better put together than other Tata cars and also comes with a range of features that are offered only in cars twice its price.

Source: ICB

Tata Nano Bangladesh launch deferred

DHAKA: The launch of India's Tata Nano, billed as the world's cheapest car, was delayed at the last moment in Bangladesh after its distributor said Saturday it was seeking a cut in price.

Nitol Motors, Tata's sole distributor in Bangladesh, was due to launch the car at a fair on Saturday but high taxes meant the price tag for the least expensive no-frills Nano would be 599,000 taka ($7,900).

That compares to 141,000 rupees ($2,870) for a basic Nano model in India.

"A lot of people came to us for booking at the fair. At least 23 people confirmed their interest," said Abdul Matlub Ahmad, director of Nitol Motors.

"But we've deferred launch of Nano at the last moment as we're seeking a re-look at the price, which some say is too high."

Both the Nano and other small cars produced by foreign companies such as Maruti are significantly more expensive in Bangladesh as importers have to pay 132 percent tax on each car, he said.



"We anticipate the Nano will be very popular because it is extremely fuel efficient. You can drive more than 25 kilometres (15.5 miles) with a litre of gasoline," he added.

Fuel prices have risen sharply in Bangladesh over the past year due to rising global costs and the phasing out of government subsidies as Dhaka struggles to rein in its soaring imports bill.

The Tata Nano, billed by the company as the "people's car", generated worldwide interest when it rolled off the assembly line in 2008, and the company is already marketing it in Sri Lanka.

When the Nano first appeared in showrooms, it was expected to create a vast new market segment in India, a nation of 1.2 billion people. But its sales have fallen far short of hopes.

Analysts attributed the Nano's poor sales performance in India to concerns over safety, lack of cheap financing and operational hiccups after production shifted to a new plant.

Last year, Tata was forced to offer free safety upgrades after around half a dozen of the cars caught fire.



Source: Economic Times

NOW, THE TATA NANO GOES TO BANGLADESH!

Tata Motors’ revolutionary low cost small car, the Tata Nano isn’t exactly making waves in the domestic market. But that isn’t stopping Tata Motors from aggressively exporting the Nano to countries across Asia. Tomorrow, the Tata Nano will be launched in Bangladesh, India’s eastern neighbor. Over the past few months, Tata has commenced exports of the Nano and now sells the car in both Nepal and Sri Lanka.

The Nano will be priced at 599,000 Bangladeshi Takas, which in Indian rupees translates to around INR 3.87 Lakhs. This is almost three times the price of least priced base variant of the Nano in India caused mainly due to the very steep 142% duty that Bangladeshi importers have to pay the Bangladeshi government in cases where the car is imported from other countries as a completely built unit(CBU). For now, Tata Motors’ Bangladeshi distributor, Nitol Motors, plans to import 3,000 Nanos into the country to gauge demand.

Going forward, the distributor will import more Nanos if the Bangladeshi car market shows enough demand for the Tata Nano. Exuding optimism about the Nano’s sales in Bangladesh, Abdul Matlub Ahmad, Director of Nitol Motors has had this to say,

"We are now taking orders — initially we’ll sell 3,000 Nano cars. We hope it will be a big hit in Bangladesh. The price will come down once we start assembling the car here. If the car becomes popular in Bangladesh, Tata has a plan to manufacture the car locally. We anticipate the Nano will be very popular because it is extremely fuel efficient. You can drive more than 25 kilometres (15.5 miles) with a litre of gasoline."



While the petrol powered Nano is undoubtedly a very fuel efficient car, with an ARAI certified fuel economy figure of 23.6 KMPL, it remains to be seen whether the blend of high fuel economy and practicality will see the Nano becoming a big success in Bangladesh. If that happens, Tata Motors’ Nano exports would ensure that the automaker’s huge investment at the Nano manufacturing plant at Sanand, Gujarat, is utilized well.

Source: Indian Cars Bikes