Tata Motors is working towards prying open the South Korean market for its own products following the acquisition of Daewoo Commercial Vehicle. The erstwhile Daewoo arm is conducting product clinics for a Tata vehicle in South Korea.
"We want to see which Tata Motors' product would be suitable for the South Korean market. At present, we are conducting product clinics for a Tata vehicle, just trying to see what modifications need to be done to make it better suited for the domestic market," said Ravi Kant, executive director of the commercial vehicle segment, Tata Motors.
Ravi Kant also said that Tata Motors-Daewoo Commercial Vehicle will use the Daewoo Sales Corporation distributor network to market its products in Korea.
The Daewoo Sales Corporation has been handling the marketing and distribution of the General Motors-Daewoo passenger vehicles and the Daewoo buses.
Though nearly 85 per cent of the South Korean commercial vehicle market is made up of heavy commercial vehicles there is a rapidly growing market for medium and light commercial vehicles.
The Daewoo CV facility at Gunsan has the capability to produce medium commercial vehicles but it has restricted its product range to heavy commercial vehicles.
At the official share transfer ceremony, Kwang-Ok Chae, president and receiver of Daewoo CV, said, "We hope that Tata Motors will help us achieve our dream of producing medium commercial vehicles."
While Tata Motors said that it has a range of products in that segment but it is upto the Daewoo CV management to decide what product would be best suited for the Korean local market and what modifications need to be done.
Ravi Kant evinced an interest in the Korean auto component industry and said that Tata Motors would consider sourcing components from Korea for both Daewoo CV and Tata Motors' operations.
