Tata Motors, country's largest automobile manufacturer by revenues, will be using the 'hub-andspoke' model in which India will be the key manufacturing base while it will have mini-hubs in overseas markets. ET has learnt that the company is adopting the hub-and-spoke manufacturing model where the company plans to 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.
For example, Indonesia could be used as mini-hub to serve South East Asian countries like Malaysia and Thailand, amongst others. Nigeria could be used as a mini-hub for other West African countries. The company's commercial vehicle unit will lead this initiative and the passenger vehicle business will follow suit in due course with a new range of products.
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-tofour years from the current 12-13 per cent share. It is currently at 50,000 units. While the passenger vehicle business may match last fiscal sales number in FY15, it aims to grow volumes threefold to 24,000 units per annum in the next two-three years.