Leading auto maker Tata Motors said on Thursday it would begin production of pick-up trucks in Thailand early next year on the back of steady demand in Southeast Asia.

Tata Motors (Thailand), a subsidiary of the Indian company, will invest 1.3 billion baht ($38 million) to launch its first output base in the kingdom, the biggest auto market in Southeast Asia.

Tata Motors "will leverage its presence in Thailand to address other ASEAN markets. The pick-up is the first in a series of exciting products planned for the region," the company said in a statement.

Production will begin in March 2008 with output capacity of 35,000 units per year, it said.

Thailand is the world's biggest maker of one-tonne pick-up trucks.