Almost a year after announcing its intention to enter the
Indonesian market and forming the wholly-owned subsidiary PT Tata
Motors Distribusi Indonesia in Sep 2012,
Tata Motors Limited
) recently launched three cars in the market. The company has
selected Tata Aria, Tata Vista and Tata Safari Storme after
extensive research on the needs of the Indonesian consumers.
Tata Motors also launched 5 Sales, Service and Spare Parts
dealerships in the country, with plans to launch 4 more by
year-end and 6 in the first quarter of 2014. Further, the company
launched its 24x1 parts program in Indonesia, which promises to
supply any part within 24 hours and will provide the part free of
cost in case of failure to supply within the timeframe.
Tata Motors also plans to open 40 workshops in Indonesia with
trained personnel and equipment by Mar 2014. The company believes
that the Indonesian market offers significant growth
opportunities and hopes to establish a strong foothold in the
The three cars launched by Tata Motors aim to meet the
requirements of different customers. While Tata Aria Pure 4x2 is
India's first multi-purpose vehicle (MPV) crossover, Tata Safari
Strome is a sturdy SUV. Both the cars run on diesel. Tata Aria
has the looks of an MPV with the performance of a sports utility
vehicle (SUV), which is expected to be popular in Indonesia.
Meanwhile, Tata Vista GZX is a gasoline-powered hatchback that
combines style and sturdiness with fuel efficiency and
affordability. Tata Motors plans to launch more vehicles in
Tata Motors currently carries a Zacks Rank #3 (Hold). Other
foreign automakers worth considering are
Nissan Motor Co. Ltd.
Fuji Heavy Industries Ltd.
). All these companies carry a Zacks Rank #1 (Strong Buy).
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