Tata Motors enters Indonesia
Homegrown auto major Tata Motors [ Get Quote ] announced its foray into Indonesia with the setting up a wholly-owned Jakarta-based subsidiary and plans to launch its products in 2013.
The company will foray into both passenger and commercial vehicles through its arm PT Tata Motors Indonesia, the company said in a statement.
"Indonesia is a key market for Tata Motors, which has a wide range of products from small cars to buses in passenger vehicles and from 0.5T mini-trucks to 49T heavy trucks in commercial vehicles," it added.
Hybrid Tata Manza
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- Significant investments will also be planned for comp. localisation, the co. said w/o elaborating.
- Tata Motors is also evaluating options for setting up a manufacturing base in Indonesia to serve the country and the ASEAN region, it said, adding commercial launch and local assembly would happen in 2013.
- Commenting on the development, Tata Motors Managing Director Karl Slym said: "As elsewhere in the world and as is the Tata practice, we will function in Indonesia as an Indonesian company...We will establish deeply rooted local operations and will grow in tandem with the prosperity of the country and its people".
On the company's product launch programme for the Indonesian market, Tata Motors Executive Director (Commercial Vehicles) Ravi Pisharody said: "Based on customer feedback, we will progressively introduce relevant passenger and commercial vehicles, backed by appropriate distribution and service infrastructure such that we are closest to our customers".
Tata Motors is also participating in the 20th Indonesia International Motor Show, starting in Jakarta on September 20. It will display 14 Tata passenger and commercial vehicles, being considered for introduction in Indonesia progressively.
The display includes a special green pavilion of Tata CNG vehicles, whose need is growing in Indonesia, it said. By the time of the launch in 2013, PT Tata Motors Indonesia will have about 10 to 15 dealers nationwide, offering sales, service and spare parts.
"Over a period of three years, the company will set up a country-wide network of about 60 full-service dealers, about 100 other workshops and about 300 more spare parts retailers," the company added.
© Copyright 2012 PTI.
Ashok Leyland may find it tough meeting rising demand of Dost
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1st anniversary: Dost, the light commercial vehicle from the Leyland-Nissan joint venture, completes one year since rollout. To mark this, the company launched a limited version edition, priced Rs 4.78 lakh ex-showroom Chennai (Rs 15,000 more than the current model) in the eight markets it operates in. V Sumantran, Vice-Chairman, Ashok Leyland, and Nitin Seth (left), Executive Director, LCV - Marketing, Ashok Leyland, at the launch in Chennai. — Bijoy Ghosh
- Exports put on hold due to strong domestic demand
CHENNAI, SEPT. 11:
As sales of its best-selling light commercial vehicle Dost gather speed, Ashok Leyland could face problems keeping up production.
The 2.5-tonner from the Leyland-Nissan joint venture, which completes one year in the market, has seen a steady climb in sales — from 210 units in the first month to 2,800 last month.
With an average waiting period of two months, Ashok Leyland is just about managing to keep pace with the domestic demand, said V. Sumantran, Chairman, Nissan Ashok Leyland Powertrain. “So much that there has been a delay in our export plan. We will look at exports only in the next financial year.”
Dost is being manufactured at Ashok Leyland’s commercial vehicle plant in Hosur, Tamil Nadu.
The LCV line is expected to ramp up to peak production of 55,000 units in the next financial year.
Meanwhile, Ashok Leyland is putting up an exclusive LCV plant outside Chennai, near Sriperumbudur. But the plant, spanning 280 acres, is expected to be ready only in two-and-a-half years.
Sumantran said the company is “still working” on ways to tackle the production constraint that could arise in the intervening period if demand goes up.
Currently, two shifts operate at the Hosur plant. But it is not clear whether the company would rejig operations or add shifts to meet the shortfall.
Ashok Leyland has sold 20,479 units of Dost since its launch a year ago, cornering market share of 31 per cent in the eight States it operates in (Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Maharashtra, Gujarat, Rajasthan and Goa).
Its national market share in the 2-to-3.5-tonne pick-up truck segment is 21 per cent, ranking second behind Mahindra Bolero. (Others in the segment are Tata Super Ace, Tata 207 and Mahindra Genio.) “We have done this without offering discounts,” said Nitin Seth, Executive Director – LCV and Defence.
Said Sumantran: “We found someone using Dost on a Hyderabad-Delhi road trip, something never expected of an LCV. We also have a woman entrepreneur ferrying vegetables from Salem to Hosur.”
LCVS POST STRONG GROWTH
Light commercial vehicles are weathering the economic downturn better than medium and heavy vehicles.
According to the Society of Indian Automobile Manufacturers, the commercial vehicles industry grew 4.57 per cent in April-August 2012 over the same period last year. While sales of medium and heavy commercial vehicles (MHCV) slid 11.94 per cent, LCVs (up to 7.5 tonnes) grew 17.05 per cent.
Ashok Leyland’s commercial vehicle sales (excluding Dost) dipped nine per cent to 6,597 units in August. Total sales in August, including Dost, rose 30 per cent to 9,432 units.
“There is a lot more headroom for LCVs in the next decade. But Ashok Leyland will continue to depend on MHCVs as per unit revenue is higher in this case, with a price range of Rs 10-45 lakh compared to Rs 4 lakh in the case of Dost,” said Sumantran.
swethak@thehindu.co.in
Ford to export Indian-built engines to Europe
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NEW DELHI: Ford Motor Co plans to ship Indian-built engines to Europe and other markets, a company executive said on Thursday, as the firm tries to boost exports in order to use its expanding Indian production capacity.
The company has invested more than
$2 billion to build factories in the country, but it has not so far won major market share from competitors such as Hyundai Motor Co and Maruti Suzuki India Ltd which dominate the small car segment.
It would be the first time the firm has shipped Indian-built engines to Europe. Ford will have the capacity to build
450,000 cars and 600,000 engines in India by 2015.
"From an engine perspective, we'll be exporting not just to Europe but also to Thailand," said Gary Johnson, vice-president, manufacturing, Asia Pacific and Africa. He did not provide more details.
"If somewhere needs more engines and we've got the capability, then we're going to ship them," Johnson told Reuters in an interview at a automotive conference in New Delhi.
Ford India currently exports 40 per cent of its engine production and 25 per cent of its car production to 35 countries.
"Europe has got significant manufacturing capacity itself," said Michael Boneham, president of Ford India. "So it's probably not that smart to go and ship cars out of India to Europe... For us it's probably more you look at the engines."
The company, which is laying off temporary workers in Europe, shortening work days and slowing the speed of assembly lines, has said it will lose more than $1 billion in Europe in 2012. In the second quarter, it lost $1,125 for every vehicle it sold in the region.
Ford India sold 96,270 vehicles domestically in 2011, while Hyundai Motor India sold 373,709, according to data from the companies.
(c) 6 SEP, 2012, 02.38PM IST, REUTERS Via The Ecoomic Times, Today's Online Edition
How do you get up there? Carry your own ladder...? Thanks man, that's got my belly aching from laughing so much.
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