Published on Mon, Nov 13, 2006 at 08:31 | Source : Moneycontrol.com
Updated at Mon, Nov 13, 2006 at 09:51
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Tata Daewoo going strong; lines up growth plans
A good four-hour drive along a smooth highway - about 250 km - from Seoul takes us to Gunsan. Mr Anurup Chatterjee, General Manager (Sales and Marketing), Tata Daewoo Commercial Vehicle Company Ltd explains the dynamics of the Korean commercial vehicle market.
Mr Chae said that after Tata Motors acquired the company, exports have grown substantially - from 360 vehicles a year to about 3,000 now. South Africa is a large export market followed by West Asia.
According to Mr Menon, the demand in the Korean market for HCV units is mainly for replacing aged vehicles.
Nearly 95% of the Korean HCV market is owner-driven, which means that the buyers ask for "creature comforts" in the cabin on a par with that of a sedan.
The company has invested substantially in improving its IT infrastructure and computer-aided design facilities. Tata Daewoo had also developed an LNG-powered truck jointly with Korean Gas.
Mr Menon said that the strengthening won was a cause for concern. When Daewoo Heavy Commercial Vehicles came under the Tata fold, a dollar was worth 1,150-1,170 won. Today, its value is 940-950 won.
"The strengthening won could affect competitiveness," he said, adding that the integrated cost management adopted by Tata Motors and Tata Daewoo would help.
In 2004-05, Tata Daewoo clocked turnover of $300 million, which increased to $370 million the next year. Profit after tax rose from $5.2 million to $14 million during this period. In the first half of the current fiscal, the company posted net profit of $11 million on turnover of $225 million, Mr Menon said.
