Mumbai, 8 July
Indian automotive giant Tata Motors is looking to start filling Indonesia&’s streets with its products later this year in an attempt to make Indonesia its biggest overseas market in the next four years. Tata Motors will start bringing in both its passenger and commercial vehicles in September, following the official launch of its brand in Indonesia last year.
The firm, which now has six dealers and around 30 to 40 workshops across Java and Bali, expects to have 10 dealers to help its operations by the end of this year and to have built 35 dealerships to cater to potential customers within five years.
Tata Motors managing director Mr Karl Slym declined to confirm its initial sales target or the number of cars and models to be introduced.
“We do have a very confident feeling because we have spent such a long time on our products, trusting the feedback of our brand and vehicles, otherwise I wouldn’t be suggesting that we can (make Indonesia) the largest market outside India in a very short period of time,” Mr Slym told reporters during a conference here last week.
Mr Slym said Tata Motors, which sold 3,50,000 vehicles outside India during the last financial year, was equipped with 50 years of experience in handling export markets in an attempt to grab a big slice of the Japanese auto-dominated market.
Tata Motors was established in 1945 and started its production in 1954, focusing mainly on commercial cars. It started exporting its products in 1961 and introduced its first passenger car, Indica, in 1998. With an annual income of $34.7 billion, the company is currently the fourth-largest commercial vehicle producer in the world and the biggest in India, controlling 65 per cent of the domestic market. It is also the third-biggest passenger car producer in India after Japan&’s Suzuki and South Korea&’s Hyundai, with a 12 per cent market share.
Tata Motors, which was listed on the New York Stock Exchange in 2004, acquired the likes of South Korean truck producer Daewoo in 2004 and British premium car maker Jaguar Land Rover in 2008.
With a sluggish car sales trend in India due to a global economic downturn, Tata Motors has attempted to expand its export market.
In line with its expansion plans, Tata considers Indonesia a potential pivot that could one day supply vehicles to the latter&’s neighbours.