Tata Motors eyeing foothold in Indonesia by joining hands with McCann Worldgroup

Thursday 23 August 2012, 11:50 AM by

Tata Motors Limited, the eighteenth largest automotive company of the world, has commissioned the global marketing firm McCann Worldgroup, Indonesia to facilitate its corporate launch proceedings in the country, wherein the domestic player will mark its presence in September 2012. McCann Worldgroup has been handed the baton for transforming Tata Motors into one of the world's most distinguished and renowned brand.

With the move of Tata Motors, it seems that the company has left no stone unturned in its quest of finding a local media agency with multi national presence before making its decision of bringing McCann Worldgroup in the frame. Tata Group has recently established its maiden subsidiary in Indonesia known as PT. Tata Motors Indonesia (TMI).

Speaking on the latest development, Biswadev Sengupta, President Director, PT Tata Motors Indonesia quoted, “Indonesia’s economy posted positive and consistent growth in the last eight years. And it is a growing market with loads of opportunities. We are looking at Indonesia very seriously, and we have long term plan for the market. Therefore we need a strong and reliable creative partner to support us entering the market.”

The move had earlier been hinted by Ratan Tata, Chairman Tata Group back in August 2011. The Chairman had then expressed his desire to invest in the promising Indonesian economy.

Commenting on the newly formed association, Berndt Soderbom, President Director, McCann Worldgroup Indonesia said, “As a global agency with global brand handling experience, we are proud to be a strategic creative partner for global company and global brand, Tata Motors. It’s an exciting time to be operating in Indonesia, and we’re encouraged by Tata Motor’s decision to invest in this market, and entrust us with their brand.”

Tata Motors announced unified revenues of $ 32.5 billion in the last fiscal and enjoys an excellent market position to explore new avenues and investment in previously ignored markets. The fast growing Indonesian market must have fuelled the interest of Tata Group to opt for the investment in Indonesia when several other world economies are also witnessing a boom.

According to Indonesian Automobile Industry Association, the country's combined vehicle sales saw a sharp surge of 26 per cent between January and July 2012 and the vehicle sales are believed to stretch to 960,000 units against the 890,000 units sold in last year. Reportedly, the Indonesian auto market possess immense growth potential as the market is flooded with middle-income group who are interested only in economical vehicles, making the situation ideal for Tata Motors to consolidate and impose itself upon the market.