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Tata Motors to use ‘hub-and-spoke’ manufacturing model abroad: Report

22 Aug 2014 Evaluate

Tata Motors is reportedly planning to use ‘hub-and-spoke’ manufacturing model where it will set up mini-hubs in potential markets like Africa (South Africa, East Africa and North Africa), the Middle East and South East Asia.

The second phase will embark on setting up small assembly bases in Europe and Latin America. The company has set a target to be among the top 5 players, in those markets.

The commercial vehicle business expects almost 25 per cent (160,000 units) of its overall production to accrue from overseas markets in the next three-to-four years from the current 12-13 per cent share. The company currently has 50,000 units.

Tata Motors is India's largest automobile company, is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer.

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