TVS has forayed into overseas
territory by kick-starting its
commercial production in Indonesia.
The new plant, TVS Motor Co’s 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
TVS’s 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 company’s 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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