Tata SUVs to compete with M&M in Russia

Tata Motors plans to export sports utility vehicles (SUV) like Safari and the recently launched TL pick up trucks to Russia, Eastern Europe and Australia by next year.
 
"Russia, Australia and Eastern Europe would be the next export destinations for Tata Motors' SUVs. The company needs some time to appoint distributors in these markets. Also, the vehicles have to be modified suiting the climatic conditions in these places," said PM Telang, president-light and small commercial vehicles, Tata Motors.
 
Tata Motors would compete with Mahindra & Mahindra, the only other Indian SUV player present in Russia. The competition would brew to Eastern Europe (including countries like Romania and Poland) and Australia as well, where M&M is looking for an entry. M&M has exported about 100 SUVs to Russia after it began export in November.
 
About 40 per cent of the 1.5 million Russian four-wheeler (car and SUV) market is cornered by SUVs. In 2004, Russia imported 3 lakh cars and SUVs, which is estimated to go up to 7 lakh by 2014.
 
"The Russian market has the potential to absorb about 1,000 SUVs every year from India in another couple of years," said a Mumbai-based auto analyst.
 
The SUV market size in East Europe is about 3 lakh. In 2005, Australians bought one lakh new SUVs, a growth of 15 per cent, compared to last year.
 
Tata Motors exports its pick ups and SUVs to South Africa, Middle East, Malaysia, Turkey, Portugal and Spain.
 
M&M is planning to double its SUV exports in the current financial year to 6,000. The company expects a surge in demand from Russia, Western Europe and Malaysia. The company has exported more than 600 vehicles to Italy and Malaysia, and 300 to South Africa.
 
RACING ALONG
 
  • Russia, Australia and Eastern Europe to be the next export destinations for Tata Motors
  • M&M plans to double its SUV exports in the current fiscal to 6,000
  • Russian market can absorb 1,000 SUVs a year from India for another 2 years
  •  
     

    Business Standard is now on Telegram.
    For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel