Tata Motors Ltd has signed a distribution, supply and technology agreement with TMT Motor Joint Stock Co. of Vietnam to sell its commercial vehicles in the southeast Asian country, the company said in a statement on Friday.
Tata Motors will export completely knocked down (CKD) kits and fully built units to TMT in Vietnam.
Tata Motor’s entry into the Vietnamese market
, said Ravi Pisharody, executive director at Tata Motors’ commercial vehicles business unit. Tata Motors has already entered Indonesia, the Philippines and Malaysia.
Mint reported on 21 January that Tata Motors will start selling trucks in Malaysia, Vietnam and Australia as part of a plan to strengthen its presence in the Asia-Pacific region. The company’s subsidiary in Thailand will serve as a base to sell to the adjoining markets, which will also help the maker of the Ace and Xenon brands of vehicles to utilize its Thai facility optimally.
The Association of Southeast Asian Nations (Asean) sold a total of 500,000 pickups in 2014. IHS Automotive, a sales forecasting and market research firm, estimates that this will expand to 576,000 by the end of 2015. Of this, sales out of Thailand are expected to rise to 450,000 in 2015, compared with 376,000 last year.