Tata might bring automobile assembly project back

Sujan Roy, regional head of Tata for Passenger Vehicles Business Unit in South Asia, was in Nepal recently to launch Tata's new hatchback -- Bolt. Tata is hopeful that the hatchback will take its brand image to a newer height in Nepal.

In an interview with Sujan Dhungana of Republica, Roy said that Bolt will compete in the segment with its best and segment peculiar features. Excerpts:

How does Tata analyze Nepali automobile market?

Nepal has emerged as one of our biggest markets for export. The demand for our vehicles is increasing as they have various segment leading features and come with uncompromised quality service. We still want to see growth of Tata's market in Nepal. However, the market condition after the earthquake has made our target growth pretty unreal as people have different other priorities. But Tata and Sipradi will do their best to strengthen our market this year as well.

Tata launched Bolt hatchback in Nepal a year after its launch in India. Why such a big gap?

We launch our products in other countries after certain period of their launch in India. This helps us to analyze the demand level of the product among customers, and its strength and weaknesses from customers' prospective. It enables us to do some additional testing and approvals so that our customers beyond Indian market get a robust product.

What are your expectations from Bolt in Nepal?

I believe that the Bolt will help us to make Tata brand stronger in the Nepali market. Rather than spending budget of millions of rupees in advertising and promotion, I feel giving customers a superior product will build a strong brand. Besides, segment competitive features like turbo charged engine, multi-drive system and the infotainment system incorporated in Bolt will take Tata brand to a newer level in Nepali market.

Which cars would be there in competition with Bolt?

Bolt will compete with Hyundai Grand i10, Maruti Swift, Volkswagen Polo and Ford Figo, among others.

What makes Tata vehicles competitive in Nepali market?

The major factor is having a stronger local partner -- Sipradi Trading. Sipradi has been doing best to make our vehicles sell high in the Nepali market. It has worked a lot to establish Tata as a competitive brand here. Similarly, special feature Tata incorporates in all its models has helped Tata build brand loyalty among customers. We give quality products and good after-sale services to customers. We have our presence in major markets across the country. Most importantly, we have better understanding of Nepal's automobile market.

It is said that Tata scrapped its plan to build an automobile assembly plant in Nepal and took the project to Indonesia. Is it true?

No. We have our independent assembly plant in Indonesia. Tata has a special relation with Nepal and the automobile market here. The problems of automobile market in India and Nepal are more or less the same. We need to study the market, demand for vehicles, and business-doing environment before establishing vehicle assembly plant in any country. Besides, automobile assembly plant is a big project and it demands establishment of other industries producing tires to gas and wires. If condition here is favorable, we might think about starting such project in Nepal.