Tata Motors, Mahindra say Indonesia export deal intact after disruption reports
New Delhi: Domestic commercial vehicle (CV) companies Tata Motors Ltd and Mahindra and Mahindra Ltd have rejected reports of a suspension of the deal, saying they have not received any communication from Indonesia regarding the suspension of one of their largest export orders.
The Mumbai-based companies said in separate statements that they had not received any communication from Indonesia and that they planned to start supplying resumes soon. They pointed to the Indonesian government’s comments, saying the advance payment for the order had already been made.
“The company has not received any further notification/communication from Indonesia so far regarding the suspension of vehicle supply order… The company has also received an advance payment for delivery of the above mentioned order,” Mahindra said in an exchange filing.
Tata Motors, the country’s largest CV maker, said reports of the deal being put on hold were based on policy discussions and did not reflect any concrete announcements from the Indonesian government.
“Media reports in Indonesia (printed in India) reflect the local policy debate on imports and local production, not the demand or execution risk of the order received. The order and advance we have received remains program-oriented and we plan to commence supplies soon and complete deliveries in phases as per our commitment,” the company said in a statement to stock exchanges late on Monday.
In February, Mahindra secured its largest ever export order for 35,000 light commercial vehicles for the Indonesian Federal government program due to President Prabowo Subianto’s drive to establish more than 80,000 community cooperatives across the archipelago country. For the same programme, Tata Motors won an order for 70,000 trucks, the largest order ever in the Indonesian market.
This order was important for both companies, considering the size of their exports. Mahindra exported a total of 34,709 vehicles in fiscal 2025, which includes passenger vehicles as well as CVs. In FY25, Tata Motors exported 18,333 commercial vehicles to all international markets.
The orders have since become a flashpoint between Indonesian trade bodies and the federal government; Domestic producers oppose imports and claim that they can meet the requirement on their own.
According to a Bloomberg According to the report, cooperatives minister Ferry Juliantono said in an interview with a local TV channel on Thursday that the agreement would be suspended until a meeting between the government and MPs.
He reportedly said the pause was “the right step to prevent further controversy.” “And when the time comes, we will be able to sit down together to find the best solution.”
Questions sent to the Indonesian president’s office regarding the status of the order remained unanswered by press time.
Shares of Tata Motors and Mahindra and Mahindra fell 1.42% and 2.14%, respectively, on Monday, against a 2.2% decline in Nifty Auto.
The export environment for Indian auto companies has been tightening since December, when Mexico, one of India’s largest auto markets, announced its first exports. sharp increases in tariffs on imports of passenger vehicles and two-wheelers. South Africa is also considering increasing import duties on passenger vehicles from 25% to 50%.
This happened at a time when the automotive sub-industry had to face problems. High tariffs in the US, one of the largest markets for auto parts exports from India.
