Tata Nano to be produced in Indonesian plant: Official

Wednesday 13 July 2011, 10:10 AM by Vikas Yogi

Indonesian auto market is on cloud nine with leading vehicle manufacturer Tata Motors eyeing the country to be their next destination for the manufacturing of their low cost car model Tata Nano.

Tata Motors has done various studies in Indonesia last year regarding the feasibility and visited prospective plant locations along with surveying the country’s auto market, Industry Ministry transportation chief Budi Darmadi told AFP.

"They have met with us. They say Indonesia has a stable economy, plenty of skilled workers and they see a good future here," Darmadi said. He also added, "They're still exploring. So far, there's no confirmation if they will produce the Nano cars here."

Tata Nano to be produced in Indonesian plant: Official | CarTrade.com
Tata Nano Launch

Darmadi was positive in his speech and said that if a world class player like Tata enters Indonesia, it will open the flood gates for job opportunities that would definitely help the country with 240 million of population to grow.

He also specfied the benefits that Tata would get by opening a plant in Indonesia. The government is preparing a regulation on tax incentives for production of low-cost and green cars and "fiscal incentives will surely be given to companies with beneficial projects", he quoted.

Tata Motors on the other hand did not comment on the matter and gave a diplomatic reply by saying "it continuously explores both what could be relevant markets and within them relevant business opportunities."

The company famous for producing utility vehicles also added that its no-frills Nano, which recently went on sale in Sri Lanka and Nepal, will be launched in other "appropriate" countries in time. The world’s cheapest car Nano, as claimed by country’s largest automobile producer, launched in 2008 costs about $3,000 and thus grabbed the global attention.

Meanwhile, Tata Motors are riding high with their fully owned British brands Jaguar and Land Rover making good profits and up thrusting the sales of the company.

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