What is the best alternative for auto manufacturers when the economy is down, sales are low and the currency has hit rock-bottom? Imports make absolutely no sense, but export become lucrative with opportunities of making even more Rupees against any foreign currency. Tata Motors is one of the many manufacturers looking at exports as a viable alternative to tackle the turbulent domestic market and will announce its entry in Indonesia this September at Indonesian International Motor Show.
Tata Motors had unveiled the Nano at the same event last year also showing intent of entering the South Asian market in 2013. The Indian auto major has plans of offering nine models – both passenger and commercial, in Indonesia by the end of 2014. Although there are no official details of the Tata lineup for Indonesia – the Safari Storme, Aria, Vista should be a part of the range along with the entry-level Nano. Tata is expected to open 6 dealerships by end of this year and gradually expand to 60 in next five years. The long term plan also includes assembly plant in Java islands with around 40 per cent localized parts.
Tata will probably use the same value-for-money pricing strategy to market its products, by under cutting the Japanese rivals. We are not too sure about the opportunities for the bigger passenger cars, but Nano has great potential as a city car in all developing countries – if not marketed as the world’s cheapest car.
