Tata Motors to set up assembly units in Southeast Asia and Africa

Tata Motors on 10 March 2014 announced  its plan to set up assembly units and sales offices in Southeast Asia and Africa.

As per the plan, the company will sell commercial as well as passenger vehicles through its recently formed subsidiary in Indonesia. The subsidiary will also help the company export to other countries in Southeast Asia.

In Africa, the Tata Motors plan to set up assembly units in Nigeria and Kenya for its commercial vehicles.

The company already has a subsidiary in South Africa that had expanded its range in 2013. It plans to increase the sale of passenger and light commercial vehicles nearly four-fold by 2018.

The company's announcement is seen by analyst as a move to overcome cyclicality in the Indian subcontinent. Also its decision to expand comes at a time when the commercial vehicle sector is in the grip of a prolonged slump. Total sales of commercial vehicles declined 25.53 per cent to 46757 units in 2013 from 62786 units in 2012.