Indonesian government officially halted its plan to import 105,000 pickup trucks and commercial vehicles from Indian automotive giants Tata Motors and Mahindra & Mahindra.
The $1.5 billion deal, which would have been the largest-ever export order for both companies, has been suspended following intense political pushback and domestic industry concerns.
The Deal at a Glance
The massive order was intended for President Prabowo Subianto’s Merah Putih Village Cooperative program to modernize rural logistics.
| Manufacturer | Order Details | Status |
| Tata Motors | 70,000 units (35,000 Yodha 4×4 pickups + 35,000 Ultra T.7 trucks) | On Hold |
| Mahindra | 35,000 units (Scorpio 4×4 pickup trucks) | On Hold |
| Total Volume | 105,000 Vehicles | Suspended |
Why the Order was Halted
The “pause” was triggered by a wave of opposition from Indonesian lawmakers and local industry bodies:
- Domestic Industry Protection: The Indonesian Chamber of Commerce (Kadin) and the Automotive Industry Association (Gaikindo) argued that local manufacturers (like Toyota, Mitsubishi, and Isuzu) have the capacity to produce nearly 1 million pickups annually and were being ignored.
- Economic Value Lost: Industry Minister Agus Gumiwang Kartasasmita warned that importing “fully built-up” (CBU) vehicles from India would ship jobs and economic value (estimated at ₹1.4 lakh crore/Rp 27 trillion) abroad instead of benefiting local Indonesian factories.
- Political Timing: Deputy Speaker of Parliament Sufmi Dasco Ahmad called for an immediate postponement until President Prabowo returns from an overseas trip to conduct a “full review” of the proposal’s alignment with his “industrial independence” agenda.
Current Situation for Tata & Mahindra
- Stranded Shipments: Despite the halt, more than 1,000 Mahindra Scorpio pickups have already arrived in Jakarta. The state-owned importer, PT Agrinas Pangan Nusantara, confirmed these units will remain in storage until further government instructions.
- Tata’s Position: Tata Motors had previously described this as a “milestone” for Indian mobility solutions. The company is now awaiting a formal decision on whether the order will be restructured into a “Completely Knocked Down” (CKD) assembly model in Indonesia to appease local content requirements.
- The “Cheaper” Argument: Agrinas CEO Joao Angelo defended the original deal, noting that the Indian vehicles were “stronger and cheaper” than domestic options and that no 4×4 models are currently fully manufactured in Indonesia.
Next Steps
The Indonesian government is expected to meet with lawmakers in the first week of March 2026 to decide if the order will be canceled entirely or converted into a domestic assembly partnership. This development is a significant blow to the “Make in India” export narrative for the automotive sector.
