Tata Motors, India’s largest automobile company, announced its entry into Indonesia, the largest automobile market in the ASEAN. The company has set up a wholly owned Jakarta-based subsidiary, PT Tata Motors Indonesia, and will foray into both passenger and commercial vehicles.

Indonesia is a key market for Tata Motors, which has a wide range of products from small cars to buses in passenger vehicles and from 0.5T mini-trucks to 49T heavy trucks in commercial vehicles. The company will begin to launch its products in 2013, for which extensive preparations are now on.

Commenting on the company’s Indonesia entry, Mr. Karl Slym, the Managing Director of Tata Motors, has said, “We are happy and honoured to be in Indonesia. As elsewhere in the world and as is the Tata practice, we will function in Indonesia as an Indonesian company, responsive to and inspired by the needs and aspirations of the Indonesian customer and contributing to the communities among which we operate. We will establish deeply rooted local operations and will grow in tandem with the prosperity of the country and its people.”

Speaking in Jakarta, Mr. Ravi Pisharody, Executive Director (Commercial Vehicles) of Tata Motors, said, “Our portfolio is globally benchmarked. We are confident that our vehicles will be a smart choice for the discerning customers of Indonesia. Based on customer feedback, we will progressively introduce relevant passenger and commercial vehicles, backed by appropriate distribution and service infrastructure such that we are closest to our customers.”

Elaborating on the plans, Mr. Biswadev Sengupta, President Director of PT Tata Motors Indonesia, said, “Our research is showing that there is a large opportunity for Tata vehicles in Indonesia, with operating conditions and customer needs being very similar to those in India. We are very confident of providing smart mobility solutions. At present, our focus is in creating a very robust service and spares support network.”

By the time of the launch, PT Tata Motors Indonesia will have about 10 to 15 dealers nationwide, offering sales, service and spare parts. Over a period of three years, the company will set up a country-wide network of about 60 full-service dealers, about 100 other workshops and about 300 more spare parts retailers. The company is also evaluating options for setting up a manufacturing base in Indonesia to serve the country and the ASEAN region. Significant investments will also be planned for component localisation. (*)