Indian automobile manufacturer Tata Motors has announced its plans to postpone the setting up of its new plant for the ASEAN market. The carmaker stated low sales to be the reason for putting off the setting up of the new manufacturing facility.
According to Mr. Karl Slym Managing Director Tata Motors, the company needs to sell at least 20,000 units annually for the new plant to be a worthy investment. Mr. Slym currently leads Tata’s operations across markets such as India as well as international markets such as South Korea, Spain, Thailand, South Africa and Indonesia.
The Indian carmaker posted sales of 4,597 units in the Thailand car market in the 2012-13 fiscal which is an increment over its sales in the 2011-12 fiscal 4,586 units.
Before the setting up of the new plant was postponed, the carmaker had planned a facility with an annual capacity of 60,000 units with the objective of cashing the opportunities offered by the ASEAN Economic Community, to come into effect in 2016.
