Tata Motors has announced that it will be ceasing manufacturing operations in Thailand. The automaker stated that the decision was made due ...
Tata Motors has announced that it will be ceasing manufacturing operations in Thailand. The automaker stated that the decision was made due to a sub scale and unsustainable business in the region. In a statement, Tata Motors said, "As part of this ongoing review, we have undertaken a reassessment of our business model in Thailand to endure it is sustainable over the long term. The business as it stands today is sub-scale and not sustainable. We have hence decoded to cease the current manufacturing operation in this financial year." The company, however, will continue to retail its offerings in the market through imports.
The decision is part of Tata Motors' Turnaround 2.0 strategy that aims for delivering consistent, competitive and cash accretive growth. One of the six pillars is net debt and subsidaries. Going forward, the automaker said that it shall continue to address the Thailand market with a revamped product portfolio that suits the local needs, and will deliver through a CBU distribution model.
The company further added, "Tata Motors is committed to the ASEAN region wherein Thailand is an important market and the company endeavours to continue serving customers as it transitions to the new operating model."
PTI quoted Tata Motors Group CFO, P Balaji saying, "It was becoming unviable business for us. Therefore, we decided to cease manufacturing operations." Tata is said to have incurred loses up to Rs. 170 crore in the Thailand business last year.
Tata Motors Thailand commenced operations in the South East Asian country since the beginning of 2008, in a joint venture with the Thonburi Automotive Assembly Group. The company retails a number of commercial vehicles in the region ranging from the one tonne Xenon pick-ups, to medium and heavy duty commercial vehicles.
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