TVS sets up assembly line in Indonesia

19 July, 2007


TVS has forayed into overseas territory by kick-starting its commercial production in Indonesia. The new plant, TVS Motor Coís first on international soil, has begun functioning at Karawang in West Java. TVS says it chose Indonesia because Indonesia has a great deal of potential, the most important being human resources.

The launch which was formally done by Indonesian President Susilo Bambang Yudhoyono, marked the unveiling of TVSís export hub for the ASEAN region. Vehicles made here would be exported all cross the ASEAN region, and also to Africa and South America.

The Karawang plant of PT TVS Motor Company Indonesia, built on 20 hectares of land, is for manufacturing models of TVS Neo step-through motorcycles. The annual capacity of the plant is three lakh units. Step-through models, known locally as Bebeks, account for an overwhelming chunk of the Indonesian two-wheeler market that is estimated to be in the order of five million units.

The company has made an initial investment of about $50 million, with local value addition of 40 per cent at start up, said a report. This is expected to be pushed up to $100 million over the next three years to achieve local value addition of 80 per cent. Further, as many as 200 employees have been picked to work for the plant, which would be increased to 1,000 when the plant starts producing to its capacity. The plant would indirectly generate job opportunities for 11,000 people, said a report.

The vehicles from the new plant would be launched soon. The companyís entry into new markets in Indonesia would be preceded by the setting up of sales and service dealerships that would also be stocked with adequate spare parts. The company hopes to sell close to 1 lakh vehicles this fiscal, the report added.


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