New Delhi: Homegrown business automobile (CV) corporations Tata Motors Ltd and Mahindra and Mahindra Ltd mentioned they’ve acquired no communication from Indonesia concerning the suspension of one in every of their largest export orders, dismissing stories that the deal might be placed on maintain.
In separate statements, the Mumbai-based corporations mentioned they’ve acquired no communication from Indonesia and are scheduled to start out provides of the CVs quickly. They mentioned the advance fee for the order has already been made, placing the highlight on the commentary of the Indonesian authorities.
Mahindrain an alternate submitting, mentioned, “As on date, the Firm has not acquired any additional intimation/ communication from Indonesia concerning the suspension of order for the provision of autos…The corporate has additionally acquired an advance fee for supply of the abovementioned order.”
The nation’s largest CV maker, Tata Motors, mentioned stories of the deal being placed on maintain had been based mostly on coverage discussions and don’t mirror any materials announcement from the Indonesian authorities.
“Media stories in Indonesia (reproduced in India) mirror a home coverage dialogue on imports and native manufacturing, not demand or execution threat of the order acquired. The order and advance we’ve got acquired stays programme-driven and we intend to start provides quickly and full deliveries in a phased method as per our dedication,” the corporate mentioned in an announcement to exchanges late Monday.
In February, Mahindra gained its largest ever export order of 35,000 gentle business autos for an Indonesian Federal authorities programme for President Prabowo Subianto’s drive to ascertain greater than 80,000 group cooperatives throughout the archipelago nation. For a similar programme, Tata Motors gained an order of 70,000 vans, which was its largest ever within the Indonesian market.
The order was important for each the businesses given the dimensions of their exports. Within the monetary 12 months 2025, Mahindra exported a complete of 34,709 autos, which included its CVs in addition to passenger autos. In FY25, Tata Motors exported 18,333 business autos to all worldwide markets.
The orders have since turn out to be a flashpoint between Indonesian commerce our bodies and the federal authorities, with home producers opposing the imports and claiming they’ll meet the requirement on their very own.
In keeping with a Bloomberg report, cooperatives minister Ferry Juliantono mentioned in an interview with a neighborhood TV station on Thursday that the deal might be placed on maintain pending a gathering between the federal government and lawmakers.
Pausing is “the suitable step to keep away from additional controversy,” he reportedly mentioned. “And when the time comes, we can sit down collectively to search out the perfect resolution.”
Queries despatched to Indonesia president’s workplace on the standing of the order remained unanswered until press time.
Shares of each Tata Motors and Mahindra and Mahindra fell on Monday by 1.42% and a couple of.14%, respectively, as towards a 2.2% fall in Nifty Auto.
The export surroundings for Indian vehicle corporations has been tightening since December, when Mexico, one in every of India’s largest vehicle markets, first introduced steep hikes in tariffs on imports of passenger autos and two-wheelers. South Africa can also be contemplating elevating import duties on passenger autos from 25% to 50%.
This comes at a time when the auto ancillary sector has needed to face steep tariffs within the USwhich is likely one of the largest markets for exports of vehicle elements from India.