Tata Motors is scouting for potential sites to set up an assembly plant in the Philippines, reports Business World. Pilipinas Taj Autogroup, Inc., the local distributor for Tata Motors in the country, plans to import CKD (completely knocked down) units from India and assemble them in the Philippines.
Possible incentives from the Board of Investments for local assembly as well as the possible introduction of a law ordering the modernization of PUVs or Public Utility Vehicles are the major drivers behind the decision to set up shop locally. Also, the company expects strong demand to the tune of 2,000-3,000 units a month for small commercial vehicles.
Vice President and General Manager of Pilipinas Taj Autogroup, Arthur A. Balmadrid said,
The direction of Pilipinas Taj is to have local assembly based on the PUV modernization program. If it's local assembly, there are a lot of benefits. First, it can generate employment, then it will attract foreign investors since there will be a lot of suppliers coming in - parts and components from the suppliers. Also, there's technology transfer. Of course, as far as after-sales (go), we are networking right now so this will mean more after-sales services.
As part of the proposed PUV modernization act, commercial vehicles such as buses, jeepneys, and public utility vans will be required to feature GPS, CCTVs to monitor passengers and the driver, and a speed limiter. It will also include monthly benefits with salaries for PUV drivers.
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The Tata Ace, Tata Super Ace, and the SFC 407 are the three products headed for local assembly. The engine and transmission for these will continue to be imported from India.
[source - Business World]
