Tata arrives in PH, targets SMEs

In a few months, Filipino car buyers may be able to drive home a Tata-branded multipurpose vehicle, passenger van, subcompact passenger car or even a pickup truck. This is because Tata Motors Ltd., India’s largest automobile company, has just appointed Pilipinas Taj Autogroup Inc. (TAJ) as its exclusive distributor here.

The distribution agreement, which was officially signed on Oct. 31 with the Filipino consortium, will allow the Philippine market to enjoy a range of tough and reliable vehicles from India’s largest and most trusted automobile company.

“Tata Motors’ name resonates worldwide. Their presence in the market will provide a chance for our consumers to choose from its wide product lineup the ideal vehicle for private and commercial use,” announced TAJ chair and president David Coyukiat, who is also the concurrent president and CEO of Pioneer Insurance and Surety Corp.

Ferdie Raquelsantos, one of TAJ directors, said the company expected to launch the initial batch of brand new models in April next year in time for  Manila International Auto Show. The initial batch would include a multipurpose vehicle model intended to replace the second-hand multicabs, a commuter van (similar to Mitsubishi L300), two subcompact passenger vehicles and a pickup truck.

SMEs

“We are positioned for the SME (small and medium enterprise) market and as replacement units for the second-hand multicabs,”  Raquelsantos said.

He revealed that at the moment, Tata Motors has no plans of undertaking a manufacturing operation in the Philippines.

According to TAJ general manager Nicky Mariano, the company is still in the process of setting up Tata’s nationwide network coverage. “We are looking at penetrating the SME market centering on the transport of goods, service and commuters. We feel that this is the area wherein the market will be moving in the next five years,” he said, noting the company would be coming with very competitive pricing scheme.

However, it was revealed that some of the cabs and chassis for its multipurpose vehicles may be sourced locally.

Dealers wanted

Mariano said the company is currently inviting highly qualified dealers who will aggressively pursue and ensure Tata Motors’ success in the local market.

“The Tata-TAJ partnership will bring in  new investment and employment opportunities to the country. It will likewise bring in Tata’s renowned technology and engineering expertise, raising standards in the market place by making available Tata’s durability-tested and fuel-efficient diesel and petrol engines,” Mariano said.

According to Mariano, the appointment of TAJ as Tata’s exclusive distributor in the Philippines is part of the Indian firm’s expansion in the Association of Southeast Asian Nations region.

The addition of TAJ should further strengthen the Philippine automotive industry. Tata Motors, with  consolidated revenues of $34.7 billion

(P153 trillion) in 2012-13, has operations in the United Kingdom, South Korea, Thailand, Spain and South Africa.

With over 7.5 million Tata vehicles plying India’s cities and countryside, Tata is India’s market leader in commercial vehicles and among the top three in passenger vehicles. Worldwide, Tata Motors is now ranked  the world’s fourth largest truck and bus manufacturer. The company’s commercial passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, Southeast Asia, South Asia and South America.