Calcutta, Aug. 31: Tata Motors is exploring the possibility of introducing its passenger cars in Russia.
The company has exhibited its entire range of passenger cars, including the Indigo hatchback, sedan and station wagon, at the Moscow International Automobile Salon.
Tata Motors expects to sell around 6,000 commercial vehicles per annum in Russia over the next three years.
“We are currently looking at options for passenger cars. This could follow the part assembly route as is done in case of light commercial vehicles (LCV), but nothing has been decided as yet. We would leverage our existing distribution base to introduce our products,” Tata Motors corporate communications head Debasish Roy said from Moscow.
Tata Motors is also showcasing its concept cars — the Tata Crossover and the Cliffrider — at the auto show.
Divyendu Kumar, the passenger car unit’s international business head, is reported to be upbeat about the Russian passenger car market.
Russia has a huge growth potential with 1.9 million passenger cars expected to be sold this year compared with 1.5 million in the last. This is because the price of oil, which is a major source of revenue for Russia, is on a rise.
The two major hurdles that Indian vehicles face while entering the Russian market are adapting to very low temperatures in winter and finding the right network of dealers and service people.
According to P.G. Shankar, head of Tata Motors international business, Russia is a focus market in the company’s global growth strategy. The company is not only looking at selling vehicles but also at investments in product development, manufacturing and marketing.
The company is planning to introduce more models of small, medium and heavy trucks in Russia. The level of localisation is also expected to rise from 55-60 per cent.