Tata Motors is planning to launch sports utility vehicles (SUVs) in Latin America
Tata Motors, Indian Automobiles major, is planning to launch sports utility vehicles (SUVs) in Latin America. The company may launch the Sumo and Tata-Safari in partnership with Fiat by the end of this year, officials close to the development said, adding the company is in advanced stages of talks with Fiat.
Fiat and Tata Motors already have a 50:50 joint venture in India, which was signed in October 2007. The JV will manufacture and market SUVs in Latin America, officials said.
Tata Motors passenger car business unit president Rajeev Dube said: “I can only confirm that something is on at the global level with Fiat. The Latin American market has a lot of potential for SUVs but it’s too early to reveal the exact plans.”
Tata Motors MD Ravi Kant had earlier announced plans to jointly develop some products with Fiat for some markets. The SUVs may be manufactured at Fiat’s existing facilities in Cordoba, Argentina.
A new facility may also be set up in Latin America. In both cases, Fiat would be a strategic partner, and products may be developed at a later stage. The JV will market the products throughout Latin America.
Tata Motors has been exploring growth opportunities in several global markets for its commercial and passenger vehicles. In fact, Tata Motors is also believed to be evaluating plans to launch Nano, the Rs 1 lakh car, in Latin America, Southeast Asia and Africa within four years.
Of late, Latin America has emerged as an attractive destination for automobile and component manufacturers due to its healthy growth rate, similar norms for safety, emission and quality compared to India and less competition from big automobile brands. Tata Motors is currently passing through a rough patch, given its quarterly loss and a drop in domestic demand.
However, during the launch of Xenon on Wednesday, Tata Motors of-ficials said they were re-thinking plans to manufacture pick-ups in South Africa owing to recessionary trends.
credits: economic times