Tata struggles in Thailand

Tata Motors' foray into the Thailand market last year with its new Xenon pickup truck has not gone particularly well.

According to industry sources in Thailand, the company managed to sell just 262 units of the Xenon in 2008, which was well below its initial targets. The biggest reason for this disappointing performance was the inability of Tata’s Indian suppliers to meet their delivery targets which lead to delays in production of the vehicle. As a result, the company lost all 300 orders that it received when the Xenon was first shown at the Bangkok Motor Show in March 2008.

Tata has also launched a CNG version of the Xenon in November 2008. However, the subsequent drop in fuel prices meant that demand for this version has declined dramatically. Another problem facing the Xenon is the perception of Indian vehicles which is not too strong in the Thai market, particularly when compared to Japanese companies like Isuzu and Toyota which dominate that market. The pickup segment itself has seen sales dropping off with the total segment expected to sell 500,000 units in 2009, compared to 615,000 last year.

Meanwhile, Tata also plans to begin production of its Ace mini-truck in Thailand for supply to the Indonesian market. The decision to produce the Ace there is believed to be taken due to the higher levels of quality that can be achieved by producing in Thailand.