Tata Motors, on Monday, said it had entered into a distribution agreement with Apex Greatest Industrial Co Ltd (AGI), Myanmar, to sell its commercial vehicles (CVs) and passenger cars in Myanmar.

As part of the agreement, AGI will distribute trucks assembled at the Magwe facility in Myanmar, which Tata Motors had set up on behalf of the Myanmar Government, a statement from Tata Motors said. The Magwe plant in central Myanmar, has a capacity to produce 1,000 vehicles per annum initially and has the flexibility to increase it up to 5,000 vehicles.

Tata Motors had signed a turnkey contract with state-owned Myanmar Automobile & Diesel Industries Ltd (MADI) in March 2010 for setting up a heavy truck assembly plant at Magwe. Funded by a $20 million line of credit from the Government of India, the plant was inaugurated in December 2010 and is now operational.

A Tata Motors spokesman told this correspondent that while initially heavy trucks would be assembled at the plant, “the agreement also includes export of fully built vehicles from India and so in future, there are options for our other vehicles. This flexible assembly plant is similar to the one we have in South Africa where we assemble the LPT 813 and LPT 1518 medium and heavy commercial vehicles (M&HCVs) and also supply our range of fully built CVs from India.”

The purchase and sale agreement between the companies was signed on May 26 in Myanmar.

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