Friday, September 28, 2012
By Manoj Kumawat
Tata to set up assembly unit in Mexico
After India, Tata Motors seems to be rocking in Mexico. The car maker has decided to assemble cars in Mexico. For this, the car maker will be setting up an assembling unit there and in all probability it will be assembling Tata Indica Vista, Tata Manza, and Tata Aria in there. As per the sources information, the car maker will also be assembling the small car Tata Nano that could not sell well upto the expectation of the car maker in the country. With these Tata cars assembled in Mexico, it is believed that the car maker will be establishing itself as a strong brand.
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In India, Tata is known for its sturdy cards. Tata Indica eV2 became the highest mileage car sold well during the petrol price hike phase that has taken its toll on petrol cars in the country. The small car Tata Nano was a dream project of Tata and it seems that it will realize the dream elsewhere if not India. In India, the car maker could not sell the Nano well and that is why it is taking it to other countries. Also there is much enthusiasm and anticipation among people. But Tata will have to step up the safety feature on Nano first in order to sell it well abroad.
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The Mexico sprint will cost $100 million to Tata and it is believed that the plant will have a capacity of churning out 50k cars annually. It is also reportedly known that Tata will be sourcing a lot of parts locally in order to bring the cost of production down and offer cars at a less price. Having said this, it seems as if Tata is in the process of building a smaller India in Mexico. Having almost similar economy, Mexico could prove to be a big hit for Tata.