Tata Motors doing a feasibility test in Indonesia

Monday 03 June 2013, 10:54 AM by

Tata Motors, the country's largest auto maker, is reported to be performing a feasibility test in Indonesia for its further expansion in the international auto market. The company has registered two hatchbacks and one Sports Utility Vehicle (SUV), namely Vista, Indica, and Safari Storme, with the Indonesian government. It must be noted that the Indica and Vista are the top-end variants of petrol series, whereas the Safari Storme is 2WD mid-level EX variant. Sources close to the development process stated that Tata Motors has issued a statement mentioning that this move has been a test check for the company in the Indonesian market.

Reportedly, the auto maker forayed into the Indonesian auto market with the help of its completely owned division, PT Tata, during September 2012. Presently, the auto maker is working on establishing a sound network in the region. However, it must be noted that since the auto maker has mentioned that it is only assessing the feasibility in Indonesia, it is anticipated that the Tata Motors may kick off its operations with the launch of Nano hatchback and a line up of its commercial vehicles, after setting up its assembly unit.

Interestingly, the auto maker is planning to assemble the vehicles in the Indonesian auto market and therefore, will route its models as Completely Knocked Down (CKD) units. Sources further said that the petrol guise of Vista will be the first model from Tata Motors be introduced in September this year. Post the launch of this model, it will deliver a stiff competition against the likes of Nissan Micra and Suzuki Ritz. With this move of Tata Motors, industry experts are of a view that the Indian car market is witnessing not so good times and a number of manufacturers are looking towards different different measures to offset the impact of slowdown.

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