Tata Motors to enter Chinese car market with JV

AHMEDABAD: After rolling out the Indica in Europe market, Tata Motors is now planning take on the booming Chinese car market by forming a joint venture in that country.
“We would like to sell our cars and utility vehicles in the Chinese car market as we have already proved ourselves in the global market place after (a successful entry into) Europe. We are talking to prospective partners in the Chinese car market, which is poised to double to 1.8 million cars in 2003 from one million cars in 2002,� Rajiv Dube, vice-president of passenger car business unit at Tata Motors, told TNN on Monday.
“It would have to be a joint venture given that Chinese regulations do not allow completely built-up unit imports,� he added. He, however, refused to divulge either the identity of the prospective partners or the time frame for entering China.
Tata Motors kicked off Indica exports to the UK market, where it is badged as the City Rover, in October. In the rest of Europe, it is sold under the Indica and Rover brand name.
In the meantime, with the passenger car plant running to almost peak capacity five years after the Tatas forayed into the car segment, plans are afoot to expand capacity next fiscal year.

“Envisaging the domestic and export demand for Indica to hold, we expect 2003-04 sales to surpass those of 2002-03 by a wide margin and expect a 20-25 per cent growth by March. We are planning to increase capacity but are not yet decided on the route to be taken. We will take a call on that in January,� he said.
Talking about the scepticism on the proposed 1 lakh car, Dube pointed out that Indica too was greeted similarly by competition. “The initial response was how can a truck maker make cars, today Indica and Indigo are among the top ten car brands in the country.�
He, however, said that the small car was in the ideation stage and would take about 3-5 years to materialise.
Dube also indicated a hike in Indica prices was on the cards in January but declined to reveal the quantum. “The last time we increased car prices was in August 2002 and that too only around Rs 6,000-9,000,� he said.
According to figures given by Tata Motors, car sales for the eight month period April-November 2003 in the domestic market crossed the 90,000 mark as against the total 1.04 lakh cars sold in 2002-03.

Of the total cars sold till November 2003, Indica contributed 53000 units, Indigo 18,000 units and Sumo and Safari put together accounted for 19,000 units.
Exports crossed 4800 cars in the first eight months of the current fiscal year, a 270 per cent growth over total exports of around 1800 cars in 02-03.