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Tata Motors Plans Producing Nano in Indonesia







After successful launching the Nano car in neighbouring Nepal, Tata Motors is now keen on launching the Nano in more markets. They are currently eyeing another neighbouring Asian market, that of Indonesia that is growing at a fast pace, after shelving their Thailand expansion plans.

The company is reportedly in talks with one of the country’s leading auto companies, for producing the Nano. While Thailand was one of their selected overseas markets for producing the Nano, following the production of their Ace and Xenon light trucks in Thailand’s Samut Prakanin factory since 2009; these plans were later shelved by Tata. According to a Bangkok daily, Indonesia appeared to have an edge over the Thailand market, in spite of Thailand already producing two Tata vehicles. Tata is supposed to have axed its Thailand plans following the proposal of attractive incentives from Indonesia.

Tata also had concerns about Thailand’s political stability, also finding their auto tax structure quite discouraging. Tata is now reportedly in talks with the PT Astra International Co. for producing the Nano. Tata Motors was among seven auto manufacturers that were looking forward to developing eco-cars in Thailand; however they scrapped their plans following a bad tax structure as well as the requirement of producing around 100,000 cars per annum after completing a fifth year of their operations.

Tata will still launch the Nano in Thailand, albeit one imported from India by year end at the International Motor Expo in Thailand for building awareness about their brand before their products are produced in Indonesia. Deliveries will begin by early 2012. The Nano, which will be marketed in this country, will be powered by a 600cc motor, however featuring enhanced speed and performance for meeting the preferences of consumers in Thailand.

The car will have 120kmph of top speed, compared to the 105kmph top speed in the Indian variant. It will also include many more features like air conditioning, and power windows as standard equipment.

Tata is also planning to bring out a luxury variant in Thailand, named the Nano Europa, including more features like ABS braking and power steering, making the car more costly than Honda’s Brio and Nissan’s March. The company is expected to manufacturer manufacture about 50,000 units of the Nano per annum at their facility in Jakarta, beginning from 2013. They also plan to export cars to Philippines, Malaysia and Thailand depending on their huge populations, and high demand for less priced cars.


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