Thursday, May 25, 2006

Indian automakers setting up plants in Abroad

Written by: S.M.Mehdi Hassan
Indian automakers are now moving their operations outside the country. Due to the recent economic boom and easy to pay car loans the country’s automobile industry is observing an increase in car sales. Now the automobile producers are establishing manufacturing plants outside India. They are taking the tax cuts and other economic benefits offered by those countries. According to the report published in Indian companies are setting up their plants in Indonesia, South Africa.

This month Tata Motors Limited and Marcopolo, a Brazilian bus making company has set up a joint venture under which, Tata Motor at its bus making plant in Africa will produce buses. Tata will also assemble pick up trucks in Thailand with a local firm.
Mahindra & Mahindra is looking forward to assemble pick up trucks in Malaysia. TVS Motor is also planning to set up a plant in Indonesia. Bajaj is also setting up its plant in Indonesia.
The prospering domestic market has made Indian automakers take bold steps and try new markets. However, economists and auto analysts mentioned that such move involves huge risks and the automakers should not move their attention from domestic market.
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