MUMBAI: Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi), the Thailand-based independent assembler of automobiles, on Monday announced the formation of a joint venture company in Thailand to manufacture, assemble and market pick-up trucks.

Tata Motors will hold 70 per cent of the equity in the joint venture company, while Thonburi will hold the balance. The joint venture will get vehicles manufactured in Thonburi's manufacturing facility in Thailand and will go on stream in a year. The estimated project cost of Rs. 120 crore will be entirely met through equity. Thonburi assembles passenger cars for Mercedes Benz.Addressing the media here, Ravi Kant, Managing Director, Tata Motors, said the joint venture would allow Tata Motors to address the Thailand market, which is the second largest pickup market in the world after the U.S. Initially the localisation will be 50 per cent. This will go up gradually. Both partners will jointly manage the operation.

The pick-up trucks will conform to international standards in quality and safety and will be marketed in Thailand and exported to other potential markets in the region.

"We will make a special version pick-up truck — one-tonne `Space Cab' (in between our Crew Cab and Single Cab models) — for Thonburi. The project cost is low because we will be making the vehicle from the Thonburi's existing facility. We are looking at making 30,000 units into the third year after commencing operations. While we are only looking at pick-ups, we will consider other products and neighbouring geographies at a later stage,'' Mr. Kant said.

While the joint venture product will be part of Tata Motors' `Global Pickup' plans, the company will introduce its own new pickup in September-October 2007. "The product will address markets like India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia,'' Mr. Kant said.

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