Thai autos to ship to Malaysia, Indonesia

Thai-built Tata light trucks will be exported to ASEAN next year to take advantage of tariffs on automotive products being reduced to zero from January, said Tata Motors Thailand's chief executive Ajit Venkataraman.

Mostly owned by India's Tata Motors, the company plans to ship the pickup trucks to neighbouring Malaysia and Indonesia, which both have vast automotive markets.

"We are committed to using Thailand as the manufacturing base to enter this regional market," he said.

Tata Motors has made preparations to make inroads into ASEAN - and is unconcerned by the expected intensification of competition in ASEAN's automotive market when the region becomes a single market, he said.

A senior executive at Tata Motors said the company expected to ship Thai-made pickup trucks first to Malaysia and then to Indonesia.

Passenger cars are very popular in Malaysia while multi-purpose vehicles are preferred in Indonesia - but both markets still have demand for various designs of light truck, the source said.

Malaysians prefer single- and double-cab pickup trucks with flat-load beds because they can use the vehicles for both passengers and cargo, he said.

"We already have these products to meet the needs of Malaysian customers," he said.

Cab-over mini-trucks, such as the Suzuki Carry, are very popular in Indonesia and Tata Motors plans to export its Super Ace from Thailand to target this niche in Indonesia's market, said the executive.

The Super Ace is sold in India and exported to many countries but has yet to be built in Thailand.

Tata Motors will display its Super Ace mini-truck at the upcoming Bangkok Motor Expo to gauge its appeal in the Thai market. Super Ace light commercial trucks will soon be produced in Thailand both for the domestic and export markets, said the executive.

Tata Motors will also bring the world's cheapest car - the Tata Nano - to Thailand for the first time at the Bangkok Motor Expo, said Mr Ajit.

"Tata Nano, a highlight at this year's motor show, represents Tata's determination to create innovations in many different aspects while improving the quality of life of our stakeholders," said Mr Ajit.

Tata Motors will also introduce its single-cab Tata Xenon CNG pickup at the show in response to the popularity of its compressed natural gas vehicles and to underline its commitment to developing products to meet the demands of business operators, he said.

Mr Ajit said he is happy with Tata Motors' progress over its less than two years in the Thai market.

After debuting with the Tata Xenon in July 2008, the company sold only 173 vehicles last year. Yet Tata Motors has already sold slightly more than 1,000 units in the first three quarter this year. The company aims to sell about 1,500 units this year and to gain a 5% share of the local automotive market over the next five years.