Tata Motors To Set Up Nano Plant In Indonesia

Tata Nano
Leading Indian carmaker Tata Motors has decided to build its Nano small car in Indonesia. Tata Motors had initially planned to expand its commercial vehicle manufacturing plant in Thailand to build the Nano. However the Indian auto major decided to move its Nano production to Indonesia after the country offered better incentives than Thailand.

Tata Motors already builds the Ace and Xenon light commercial vehicles in Thailand. It was previously believed the Nano would be built in Thailand itself. Tata Motors changed its plans after Indonesia offered better incentives and has already begun talks with a local car manufacturer PT Astra International.

Tata Motors has claimed that Thailand had a unfavourable tax structure. The Tata Nano will be first displayed at the Thailand International Moto Expo later this year. Tata will export the Nano from Indonesia.

A news report in Thailand has said deliveries of the Tata Nano will begin in Thailand early next year. The Tata Nano will be modified to deliver more power and performance to meet the preferences of Thai customers. The Tata Nano's top Speed in Thailand will be increased to 120kmph. Tata will also add features such as power windows and air conditioning as standard equipment.

Tata Motors is expected to build 50,000 Nanos per year from 2013 in Indonesia. The company intends to export the small car to Thailand, Malaysia and Philippines. All these countries prefer small, fuel efficient cars and the Tata Nano is a perfect car to suit their expectations. The increasing international exposure of the Nano will definitely make it the people car as it was envisaged during its launch in 2008.

Article Published On: Monday, July 11, 2011, 18:25 [IST]
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