2013- Tata Motors to set up a manufacturing plant in Jakarta, Indonesia

India might pose to be the largest automobile market in the year 2030, but if talk about present, one of such growing markets in Asia is the Indonesian automobile market. It might not be churning out the profits which will give hangover to the coming years as well, but it definitely poses to be the strongest and rudest market in coming years. Undoubtedly many bigger brands are ensuring that they have their say in the Indonesian market. Even our very own Tata motors are thinking to build a manufacturing unit in Indonesia which will be used to manufacture the small yet promising car Tata Nano.

Right now the plan is under a constant vigilance of the various study teams. They now are checking the feasibility of the plan. Indonesia might be a growing market but is it really worth to pin the elephant. Three of the Tata’s spokesperson gave a green signal to this piece of news as they said, “yes, we will be establishing a manufacturing unit in Jakarta. We will be announcing this piece of news shortly, but till then it is all under wraps.” This plan is basically designed in order to get a foot hold of the large yet untapped markets, and it begins from Indonesia. Next step will include Malaysia, Philippines and Thailand.

A humongous economic growth and the rising confidence in the consumer level credited the Indonesian market to become the fourth largest market in the South East Asian region last year. Also, the decision was influenced by the sales figures of light vehicles which expanded to 2.23 million units from last year making a sales growth of 36%, according to the Asian Automotive market reports by JD Power and Associates in January this year. When asked abut the Indonesian automotive market, Mr Abdul Majeed, Auto Practise Leader, Pricewater House Coopers Llp, said, “Indonesia somehow depicts the Indian market in true sense. Though, the language is different and also the pattern is different, but it is showing some significant signs which say it’s too close to being like the Indian automotive market”.

Experts say that why Indonesia is suddenly in the spotlight is because of its large rural populace. This is one of the major contributing factors in the sales generated in this country last year. Tata motors believe that this factor will help them also. Tata Nano is offered for the lowest of prices and that will suit the budget of rural people. Earlier Tata Motors was planning to expand its facilities in Thailand by introducing Tata Nano to it. But right now those plans have been folded and kept inside the top most shelves. The reason for the same is that out of all four markets listed above, JD Power and Associates said that “if we have to bet against one of them then it will be Indonesia for sure”.

A private study revealed that Indonesia will jump an 11% increase in 2011 year on year. This plan is said to be completed and take a definite shape in the fiscal year 2013. Once they’ll get hold of the production of Tata Nano, the company will also start manufacturing Tata Ace side by side. It is expected that this manufacturing unit will be capable of generating 50,000 units per year both. Currently Tata Motors has asked for the quotations by various key suppliers from Indonesia. Some have already visited India for the same and many other suppliers are supposed to make their trips soon.

While the other officials didn’t comment on this piece of news, Mr Telang, Managing Director, India Operations, said that “we are trying to find out the markets which are somehow matches to the axis of Indian Market and also Indian Geographies”. When asked the same question from Carl-Peter Forster about the same he said, “Currently, the company is planning to churn out 12000 to 15000 Tato Nano per month in Sanand, Gujarat, from March of this year, and I won’t speak of anything else”.

Daimler’s stake in Tata motors is up for grabs

It all seems to be a year of buying and selling of stakes, redefining the business strategies, venturing and pulling out diversifying the business for virtually all major automobile manufacturers around the world. The latest to join this list is Daimler AG, German car major, which has announced that it plans to sell its 5.34 percent stake in Indian auto major Tata Motors. It is expecting to raise an estimated Rs 1,950 crores from the proposed sale.

Tata Motors is owned by a host of companies, with only 38.08 per cent stake held by Tata group out of which a significant 27.89 percent is held by Tata Sons and other group companies hold the remaining shares. Tata Sons are not expected to buy-out the shares of Daimler AG according to some sources familiar with the latest developments.

Daimler will be offering 25.6 million shares in a block deal for Rs 737 to Rs 761, which is expected to be completed in the next few days.

At this price level, the price offered by Daimler is at a discount of 4-7 percent to the actual price of the stock, which closed at Rs 796.75 on the BSE. The deal will be routed through Citibank Inc.

Daimler is the world’s largest truck maker and Tata’s Jaguar competed with the Mercedes-Benz. The German truck maker is in its construction phase of a facility at Chennai, which is expected to roll out vehicles from 2012.

Daimler currently own ordinary shares of Tata Motors to the tune of 5.34 percent and 4.71 % on a fully diluted basis.

Since 19 February 2010, share prices of Tata Motors has rose to about 19 per cent, courtesy to the recovering of sales by its latest acquisition, the Land Rover and Jaguar.

It has been observed for quite some time now that Tata Sons is consolidating stake in Tata Motors. Last Saturday, Tata Sons increased its stake by an additional 0.76 percent when it bought 3.69 million shares of Tata Steel.

By the end of the December quarter, Tata Sons which had a 27.13 per cent stake in Tata Motors has increased it to 27.89 per cent.

JLR on its path to glory, thanks to the Chinese

Tata Motors trophy brand, Jaguar Land Rover has inked a fresh deal with people’s republic of China to sell 40,000 of its  iconic cars in 2011. It has been billed as more than a billion dollar deal, which has come on the lap of JLR over the previous order of £850 million for 13,000 cars.

The worth of the deal was more than a billion dollars, was confirmed by a spokesperson at the Tatas.

The break up of the 2009 deal was roughly 10,000 Land Rovers and 3,000 Jaguars, whereas the new package consists of 36,000 Land Rovers and 4,000 Jaguars. The deal to sell China 13,000 cars was expected to be honored by the year 2011 but was completed one year ahead.

Deputy Prime Minister of Great Britain and Vice Premier of China oversaw the signing of the memorandum of understanding to mark the new deal. The deal was signed by president of Jaguar Land Rover China and Jaguar Land Rover Chief Executive Officer (CEO).

The new deal was projected as important to Great Britain’s economy along with the growing significance of the Chinese market. It was further revealed that China is the fastest growing market for JLR in terms of volumes and economically was the third largest across the world. JLR’s improved sales performance was attributed to its success in the Chinese market with the company registering a growth rate of 19% over 2009.

Details of JLR’s performance in India were not provided, which is the latest market that the luxury brand has recently entered.

Tata Nano receives the best international design award


What a better way to receive appreciation than to be appreciated by an international personality. This is the same which happened with one of the Indian cars. Nah, it isn’t one of those big international names doing business in India. It is our very own Tata Motors and the product is none other than the world famous small car, the Tata Nano. This honor was bestowed on the Tata Nano by the Chicago Athenaeum: Museum of Architecture and Design with the European Centre for Architecture Art Design and Urban Studies.

Tata Motors CEO Ratan Tata said in a press statement that this award was conferred on the Tata Nano due to the reason that even though what its small exterior dimensions may suggest, the car still has enough space to seat 4 inside with reasonable comfort. It also has one of the most fuel efficient engines in India. It is even more spacious than the other smallest car in India, namely the Maruti 800. Sales of this car were dented recently due to the car catching fire incidents and some reports of fuel efficiency been not upto the mark thing. However Tata Motors were quick to rectify this situation by adding a fuse to the electrical circuit and also a heat guard over the silencer. To improve the appeal of this small car, the company also recently started giving the car over the shelf and for those opting for finance, the company itself started dishing out a special finance scheme wherein which the prospect can get his/her loan approved within 48 hours.

This is definitely a moment of pride for India wherein the designed in India Tata Nano gets such accolades.