Tata Engineering has decided to draw up a business strategy for expanding its operations overseas.

The commercial vehicles maker has constituted an internal team to take a re-look at its exports strategy, aimed at identifying newer opportunities and geographies.

The move comes in view of the lacklustre demand growth with in India. Exports currently account for around 7-8 per cent of Tata Engineering’s total turnover.

"Exports should make a meaningful contribution to the company’s overall growth. Our internal team is working on how to go ahead and take on global majors," said Ravi Kant, executive director (commercial vehicle business unit) of the company.

"Since organic growth in the domestic market will have certain limitations, Tata Engineering must look at new geographies in the future. However, I cannot speak on the specifics of our international business strategy," Kant added.

The company is already looking at the possibility of setting up a manufacturing base for trucks in China, subject to feasibility studies.

As per the Chinese law, it will then have to partner with a local player, if Tata Engineering goes ahead with the plan.

At present, the company exports its commercial vehicles to south-east Asia, south Asia, Africa, west Asia, Latin America and also Europe where it sells the 207 range of vehicles.

Auto analysts said it was likely that Tata Engineering would look at third world countries to expand its presence.

Tata Engineering is already looking at the possibility of marketing its Indica passenger car in Europe, though talks on the issue have yet to fructify.

Tata Engineering had posted a 26.3 per cent rise in total domestic sales at 17,488 vehicles in August 2002 against 13,843 vehicles sold in the same period previous year.

For the first five months of this fiscal, the company’s sales have jumped 25.8 per cent at 73,999 vehicles against 58,835 in the corresponding period last year.

The company witnessed a 20.8 increase in the sales of commercial vehicles which stood at 8,006 in August 2002 as against 6,627 in August last year.