Jakarta: Tata Motors Ltd, India’s largest vehicle maker, is conducting a feasibility study to market its cars in Indonesia, a senior company official said on Thursday.
Indian vehicle manufacturers, including motorcycle-makers Bajaj Auto Ltd and TVS Motor Co Ltd, already have production plants in Indonesia.
“We have a whole spectrum of products. We’ll see what the market requires. We plan to look at this market very seriously,” said Amarjit Singh Puri, senior general manager for government affairs and collaborations, at Tata Motors.
“We need to identify which segment we should bring in and what products we should bring in. We’ve just started the feasibility study. It could take between three to six months.”
Tata Motors has a plant in Thailand and has sold nearly 600 one-tonne pick-up trucks since entering the Thai market about a year ago.
Separately, Dilip Chenoy, director general of the Society of Indian Automobile Manufacturers (SIAM), said there are several Indian car manufacturers who are interested in Indonesia because of the country’s stable economy.
“Indonesia’s economy is still positive. And it’s a growing market,” said Chenoy.
Indonesia, along with China and India, posted positive growth in the first quarter of this year. The economy expanded 4.4% in the first quarter and is estimated to have grown by 3.7% in the second quarter.
Domestic car sales in Southeast Asia’s biggest economy are expected to reach 450,000 units in 2009.