Mahindra Admits No Plans Yet to Assemble Cars in Indonesia

KatadataOTO – RMA Indonesia, as the APM for Mahindra in the country, does not want to rush into producing vehicles locally. They prefer to build the market by first introducing cars as CBU (Completely Built-Up) units.

With this strategy, it is hoped that the public can first see the advantages of the vehicles they offer. If this is achieved, it is not impossible that sales will increase, and they can consider producing cars domestically.

“We'll see first, if the demand increases, it will certainly be considered,” said Toto Suharto, Country Manager of RMA Indonesia (05/12).

To increase sales, they will add more dealerships. In addition, various services will continue to be provided to customers.

Photo: KatadataOTO

This is important considering that marketing vehicles from India is not easy. There are various challenges to be faced, especially when introducing a new brand.

“But now consumers are smart enough to see if the product they buy is value for money,” he emphasized.

RMA Indonesia's decision to be more cautious in working on the domestic market should be appreciated. Because the tight competition for new brands is a situation that cannot be underestimated.

Tackling the Passenger Vehicle Segment

It was previously reported that RMA Indonesia, as the APM for Mahindra, plans to expand its market in Indonesia. One way is by entering the passenger car segment, which has a fairly large market.

“Hopefully next year we can bring in passenger vehicles. Because so far, Mahindra has been more present in plantations or mining, so it's less visible in urban areas,” said Toto.

This commitment is expected to increase vehicle sales in the country, which are currently under pressure. This is because the public will have more car options to own.

Photo: Courtesy

He also revealed that it is not out of the question that they will bring EVs to Indonesia. This is because they do have models in that segment.

“Mahindra already has electric cars in India, so I think that will be an interesting thing in this country. But everything can be an option, whether it's ICE, EV, or even both,” he concluded.