(Insider Stories) - India’s automotive company Tata Motors Ltd plans to make Indonesia its main hub and production base for southeast Asia, as part of a revised expansion strategy for the region. Its subsidiary, PT Tata Motors Indonesia  will foray into passenger and commercial vehicles.

Tata plans to launch sales operations in the country in September with the intention of building a local assembly plant once volume grows to sufficient levels in three to four years. It plans to have seven dealers operating by September and 15 by March 2014.

Executive Director of Tata Motors's Ravindra Pisharody before said,  Indonesia is the biggest market in Asia and in expect in the next three to five years the regions will move by Indonesia. First, He said, the products will deliver for local markets.

Biswadev Sengupta, Tata Motors Indonesia's President Director added, in five years times Tata aims to become significantly player in Indonesia. Tata will sell passengers and commercial car in differrent segment like pick up, small cars, coal mining trucks and bus.

To distribute their products, Tata Motors has talk to many dealers in Indonesia. Recently the company prepare investment US$500,000 to build dealers in India.

Tata Motors Indonesia formed in December 2011 and plans the commercial operations in Indonesia in the first half of 2013.  Locally in India we prepare capex $600 millions. Indonesia will lower than that. Tata Motors have 14 plants in Asia, Africa and Europe.


The vehicle market in Indonesia has expanded sharply in recent years, reflecting strong domestic consumption and high investment growth. In 2012, sales increased by 25% to 1.1 million units and by 12% to 601,000 units in the first half of 2013. 

With its population of 245 million, Indonesia is widely expected to become the largest south-east Asia market in the near future.