Can Tata Avoid Potential Banana Skin?

India's Tata Motors is in talks with Venezuela-based MMC Automotriz to potentially begin assembly of its vehicles in the country, the Venezuelan Chamber of Commerce for Auto Parts (CANIDRA) has revealed. Latin America has long been a target market for Tata. It has previously expressed interest in partnering with local players to carry out production in Brazil and Mexico. BMI, however, warns there is a highly unfavourable business environment for carmakers in the country. Coupled with the government's nationalist drive in Venezuela, this is making it one of the least attractive markets in the region, according to BMI's Risk-Reward ratings

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