Tata Motors may take Mexico road to North America

by Dave

livemint.com

In a move that will enable Tata Motors Ltd to establish a beachhead in North America and a few other emerging markets, India’s largest auto maker by revenue is in talks with Mexico-based Metalsa SA de CV for a contract manufacturing arrangement, two people familiar with the development said. If the talks lead to an arrangement, the unit will manufacture the Indica Vista, Indigo Manza and the Nano.

“A team from Tata Motors consisting of senior officials, recently visited Mexico for the purpose,” said one of the two people.Tata Motors’ move to enter new markets through a contract manufacturing arrangement mirrors its past moves of making a low-cost entry into new markets. In 2008, it bolstered its presence in South Africa by acquiring a used assembly plant owned by Nissan Motor Co. in that country.

Metalsa, a subsidiary of Grupo Proeza, manufactures components for the passenger car and commercial vehicle makers. Grupo Proeza is a privately-held Mexican group with diversified interests in automotive, foundry, juices and fruits, information technology and healthcare.

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