Ravi Pisharody in Jakarta on Tuesday. (AP)
Mumbai, Sept. 11: Tata Motors today announced its entry into Indonesia, the largest automobile market in the Asean region.
To mark its foray, the company has set up a wholly owned Jakarta-based subsidiary — PT Tata Motors Indonesia.
Tata Motors will be present in both passenger and commercial vehicles segments. It plans to set up a manufacturing base in the country as well.
The Indian car maker expects Indonesia to become a key market as it has a wide range of products from small cars to buses in passenger vehicles and from 0.5 tonne mini-trucks to 49 tonnes heavy trucks in commercial vehicles.
The firm aims to launch its products there in 2013.
“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,” Ravi Pisharody, executive director (commercial vehicles) of Tata Motors, said in Jakarta today.
According to Biswadev Sengupta, president director of PT Tata Motors Indonesia, a research study undertaken by the firm showed there was a huge potential for Tata vehicles in the country since the operating conditions and customer needs were very similar to those in India. He said the company would try and create a very robust service and spares support network even as it would concentrate on component localisation.
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 plans to set up a country-wide network of about 60 full-service dealers, about 100 other workshops and about 300 more spare parts retailers.
Tata Motors said it was also looking at the prospects of setting up a manufacturing base in Indonesia that would not only serve the country but also the Asean region.
Tata Motors has operations in the UK, South Korea, Thailand, Spain and South Africa. These are represented by Jaguar Land Rover that was acquired in 2008 and Tata Daewoo Commercial Vehicles Company in South Korea.
The firm is also present in Spain through Hispano Carrocera, a bus and coach maker. It has an assembly plant in South Africa and is also present in some other countries including Brazil and Thailand.