Tata Motors launches the Xenon in Thailand

Bangkok: Tata Motors has launched its Xenon pick-up utility truck into the competitive Thai pick-up truck market, announcing its arrival at the Bangkok Motor Show.

The 1-tonne Xenon pick-up is powered by a 2.2-litre engine, and will be available in two versions, one a single cab, and the other a double cab. The truck will compete with well-entrenched favourites such as Isuzu, Toyota and Honda. Initially, the Xenon will be imported as a completely knocked down (CKD) kit from India, and assembled in the plant of Tata Motors' joint venture partner, Thonburi Automotive Assembly Co.

The Thai market's size is estimated at around 4,00,000 units per annum. As a market for pick up trucks, Thailand is second only to the US. Tata Motors is looking to be able to sell around 5,000 units during the first year, and has stated its intention of securing 5 per cent of the market within 5 years.

Deliveries of the truck shall commence in around a month, with order pipelines already starting to roll into action. Tata Motors (Thailand) will market and distribute the trucks by itself, having appointed 20 dealers. The company is looking to make Thailand a hub for exports to ASEAN countries, leveraging the Asean Free Trade Zone concessions.

Talking to the media at a press conference, Tata Motors' managing director Ravi Kant said that the Xenon was created keeping the Thai market in mind, basis considerable market research and customer study in Thailand. Tata Motors (Thailand) Ltd has invested about Rs130 crore in the joint venture. It is the larger partner in the venture, with a 70 per cent stake, and its partner Thonburi will play the role of a contract assembler of the trucks, in addition to contributing its intimate knowledge about the Thai pick up truck market.

Tata Motors aims to have a localisation content of around 40 per cent by the end of the first year. For now, body panels, the engine and the gearbox would be supplied from Tata Motors' Pune facility.