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Indonesia to become Tata's main market outside India
Jakarta Globe, 18 Sep '14

Tata Motors, one of the India's largest auto-makers, aims to make Indonesia its biggest automotive market outside the South Asian country in the next four to five years, the head of the company's local unit said on September 17th.

"In about four to five years, we expect Indonesia to be the biggest market outside India. At the moment, Bangladesh absorbs between 15 and 20% of our overall export volume.

"South Africa also absorbs about the same," president director of Tata Motors Indonesia (TMI), Biswadev Sengupta, said in Jakarta on September 17th.

The Mumbai-based manufacturer sold about 40,883 vehicles in India in August alone while overseas sales made up nearly 10% of the figure or equivalent to 4,480 vehicles, according to Sengupta.

Tata Motors has expanded its market reach to Britain, South Africa, South Korea, South Asian countries including Nepal and Bangladesh, and Southeast Asian countries including Thailand and Indonesia.

"We eye Indonesia with lots of interest," said Ravi Pisharody, executive director for commercial vehicles at Tata Motors.

He added that banking on this country's large population and rising middle-income group, "it is only a matter of time before Indonesia will surpass other regions [in terms of the overall sales contribution]."

Indonesia is the second automotive hub in the region after Thailand.

The company started selling its cars in Indonesia in September last year after it set up TMI, which along with sister company Tata Motors Distribusi Indonesia, handles sales, distribution and after-sales service of Tata vehicles in this country.

According to Sengupta, the automotive firm has sold around 500 vehicles locally so far.

It has five models - the Aria, Safari Storme, Vista, Xenon and Super Ace, a mini-bus with 1.4-litre, diesel engine. He said the pick-up model is the top-seller, followed by the hatchback. The five models sell for between IDR 130 million and IDR 300 million (US$ 11,000- US$ 25,000).

Sengupta said Tata will introduce its newest line-up for the local market at the Indonesia International Motor Show, which runs from September 18th to 28th.

The new model is called Tata Ace EX2, a suburban mini-diesel with a 700 cc engine. It will only cost IDR 60 million due to its lower engine capacity.

"Given the high demand for pickups in this country, we offer a very fuel-efficient car," Sengupta said.