Tata Motors to join hands with a Mexican ally to enter into US

By By: vicky.in

Published: Thursday, June 2, 2011, 15:40 [IST]

With hopes pinning on the safe and sleek ride into the US, Tata Motors has found an ally from Mexico in this regard - Metalsa SA de CV, for the proposed US launch of Nano in 2011. Metalsa is a subsidiary of Grupo Proeza involved in manufacturing components for passenger and commercial vehicles. The Indian arm, Metalsa India is involved in supplying critical parts like chassis, and oil pumps to Tata Motors for its heavy and medium heavy duty trucks, processed in its Jamshedpur plant.

The tie up will recollect the nuances of a long back association with Metalsa and the US bid is aimed at delivering 3-5% volume. Hence the company prefers to have a contract basis manufacture of Nano. Majority of companies adopt to CBU pattern for volumes less than 15% and only for more than 15% a production plant may materialize. If the dialogue with Metalsa materialized, then Tata may produce Manza and Vista for US. The current volume of Tata in overseas business comprised 10% of net sales and the expansion is the need of the hour for Tata.

Article Published On: Monday, May 31, 2010, 16:55 [IST]

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