Tag Archives: asian tigers

6 Decades of experience Tata Motors Enough To Compete in Indonesia?

jaysonhyd   June 11, 2017  
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India became one of the Asian tigers after China, of course it is very reasonable considering the potential of the industry in India is estimated to be on the increase in every year.

One industry that was writhing in India is automotive. They have a Tata Motors car brand. Tata Motors has even become a world player by buying luxury car brands such as Jaguar and Land Rover.

detikOto and 10 colleagues from the Indonesian media doing a special interview with Karl Sylm who now served as Managing Director of Tata Motors Limited, and other officials at Tata Motors. Here are excerpts of the interview:

1. Experience what it will be brought to market Tata Motors Indonesia? Because Tata Motors will compete directly with the Japanese and European manufacturers, and how you distribute and make sure Tata will be accepted in Indonesia?

Karl Sylm (KS): Thank you for your question. But to answer the difference our commercial vehicles and our position in Indonesia will be answered by Pisharody (Ravindra Pisharody-Executive Director-Commercial Vehicles Tata Motors Limited).

Our experience in domestic and international markets it has entered the age of 60 years, but in fact for the Indian market we have exceeded that time, but for the international market has been 60 years since 1961.

We make sure the products we sell are the best products, more focused on customers who have adapted to the Indonesian market. I think you give us a comparison with Chinese products in Indonesia, but we have a business model and all the products are readily accepted in all markets (global).

I think we are very experienced for 60 years in various countries and groups, we are also very experienced in doing business in international markets. So I think we are very experience, we have been successful and find out who we (Tata Motors) and different from other Indonesian market. In particular I would ask Ravi and Ranjit to add.

Ravi Pisharody (RP): Like what Mr Slym said, we have exported for commercial vehicles since 1961 and has had more than 50 years to sell vehicles outside India.

We have a unique porpolio and I think not only our unique from India or Asia but overall we did have a uniqueness. You have seen all our products, which initially we only sell 20 thousand rupees and now we’ve been able to sell up to 50 or 60 lakh rupees.

So is the case of passenger vehicles, initially we only introduce the Nano and now have a larger vehicle (MPV and SUV). So I think if you look at our portfolio then it could be said of our products can be used in many countries, especially developing countries. And we have a very good portfolio.

We already have 50 market share in many countries such as Sri Lanka, Bangladesh and Nepal. And even in some markets in Africa, South Europe we really have a market share of up to two-digit market share.

So we are not going to enter a market (if not actually) so it is not possible for us to enter the market and then leave the market because we do not succeed or lose interest.

Indonesian markets have in common with the Indian market, so I think that our product will be successful and become a born popular in Indonesia. And to provide an example for you otu like Super Ace and Ace Family is not popular in India, but since 2005 ago until today we have more than 50 percent of our revenues from the commercial.

So we know a lot of the market, especially for the Asian market there is very strong demand for this product (Tata Motors). In addition we have a product that is affordable and I think we will maintain it for the long haul.

We do not just do one step, kmai also invested the company (Tata mill) and we also invested another dimerek, and proof of our success.

And talk to the distribution, we have a vast area and the distribution of scattered large number of countries. So I think we have a lot of space in the countries where we are already operating there and provide an excellent opportunity to utilize and present in Indonesia.

The next answer is also given President Passenger Vehicles Business Unit, Ranjit Yadav.

I think Karl and Ravi had said it all. I just wanted to say India is one of the most competitive markets. Where we (in India) have a variety of brands, such as from Europe, Japan, Korea etc..

And we played here and get success here (India). So we really know how to handle a competition. In addition, we also export as mentioned by Karl well in Europe, South Africa and so on.

And we believe we’ve had a set of portfolios in which they can achieve success. Karl also mention that we have a very young population and similar to Indonesia.

So we focus on the design, driving experience. This and that we’re working for our current product focus.

I know Indonesia is the most connected country in the world. But I think we have learned from India and will study together for the Indonesian market.

So what will we do now, our vehicle will be a solution and will achieve success in Indonesia. Because we have a great product suitability, we have the intention to be in the market for the long term with our portfolio of Nano to SUV.

I think it would be very good (introduced in Indonesia). And we are committed to change and ensure our vehicles suitable for the Indonesian market. So this is a huge commitment from our side but to sell the vehicle and provide the best service. Thank you.

KS: So we have an important point, if we introduce our products and introduce them into the market just not necessarily sure we will achieve success.

So it is important for us to develop our car on the Indonesian market. For example, by using four Design Center. We have one in the UK, one in Italy, one in Korea and we have one in India.

And we will use the centers of the four design centers to ensure we can enter into the global market. And I think it’s very important that we reach the global marketplace.

Besides such training centers (in Indonesia) we will have it. Even prior to our September launch we already have it planned at the end of July, beginning of August and we’ve been able to use it.

This preparation also we do to create the right support for customer service. We have to start up this plan for 8-9 months as a whole.

So that we can provide excellent support on all fronts and not make us not like many other companies. We did it bertahapakan penetrated kesmua island (in Indonesian).

And we will start in Java and Bali, so whatever we do we are very confident, and we will gradually expand our business. So anything that we sell can provide support to customers.

This is something that we believe in and we are ready for it. Thank you.

2. What products to Tata Motors introduced in September 2013, and segment models like what like what?

KS: Okay, for the first model we have not been able to announce today the launch, but how was it for a while longer. And we are very pleased to be reset you all again to Mumbai India.

We will be launching our products as our second step, but we also can not say its products. We had planned it long enough, so we do not come and do something wrong.

The first step is the most important thing, you will remember your first activity, that is why we have taken so long in planning every aspect.

We will introduce the vehicle in 3 segments of both passenger and commercial vehicles and will be announced later. We are very confident will be accepted in the market, because we have spent a long time to prepare for our products.

Believe will get a good response to our products, and our vehicles will be a big market outside India in a short time (in Indonesia). Because we have had up to 60 years of experience diapsar Internasioa. and we have the knowledge in (India) and abroad.

Head International Business Comercial Tata Motors Limeted, Wasan RS: Regarding ASEAN, we have been present in Thailand for 6-7 years. We also have taken the marketplace, both diesel and CNG market unntuk pick-up.

ASEAN is one of the fastest growing automotive markets in the world and Indonesia is one of the biggest markets than in Thailand. We plan to invest in Malaysia, Thailand, and other countries. And Indonesia will be the pivot on which we will build a strategy for ASEAN.

We will also expand to Vietnam, Malaysia and the Philippines. Thailand is a very important pillar for us. We launched the brand in September with our manufacturing facility in Thailand. We expect to do well. Research has been ongoing in parallel to start something similar in Indonesia.

Ravi Pisharody Executive Director-Commercial Vehicles Tata Motors Limited: Indonesia will be a huge market for many of these products.

Will have a dual phase approach. Some vehicles will be launched in September and some stage I will be in the second stage. This will help us achieve and become the largest single business outside India.