New Delhi: Homegrown commercial vehicle (CV) companies Tata Motors Ltd and Mahindra and Mahindra Ltd said they have received no communication from Indonesia regarding the suspension of one of their largest export orders, dismissing reports that the deal will be put on hold.
In separate statements, the Mumbai-based companies said they have received no communication from Indonesia and are scheduled to start supplies of the CVs soon. They said the advance payment for the order has already been made, putting the spotlight on the commentary of the Indonesian government.
Mahindra, in an exchange filing, said, “As on date, the Company has not received any further intimation/ communication from Indonesia about the suspension of order for the supply of vehicles…The company has also received an advance payment for delivery of the abovementioned order.”
The country’s largest CV maker, Tata Motors, said reports of the deal being put on hold were based on policy discussions and do not reflect any material announcement from the Indonesian government.
“Media reports in Indonesia (reproduced in India) reflect a domestic policy discussion on imports and local manufacturing, not demand or execution risk of the order received. The order and advance we have received remains programme-driven and we intend to begin supplies soon and complete deliveries in a phased manner as per our commitment,” the company said in a statement to exchanges late Monday.
In February, Mahindra won its largest ever export order of 35,000 light commercial vehicles for an Indonesian Federal government programme for President Prabowo Subianto’s drive to establish more than 80,000 community cooperatives across the archipelago nation. For the same programme, Tata Motors won an order of 70,000 trucks, which was its largest ever in the Indonesian market.
The order was significant for both the companies given the scale of their exports. In the financial year 2025, Mahindra exported a total of 34,709 vehicles, which included its CVs as well as passenger vehicles. 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, with domestic manufacturers opposing the imports and claiming they can meet the requirement on their own.
According to a Bloomberg report, cooperatives minister Ferry Juliantono said in an interview with a local TV station on Thursday that the deal will be put on hold pending a meeting between the government and lawmakers.
Pausing is “the right step to avoid further controversy,” he reportedly said. “And when the time comes, we will be able to sit down together to find the best solution.”
Queries sent to Indonesia president’s office on the status of the order remained unanswered till press time.
Shares of both Tata Motors and Mahindra and Mahindra fell on Monday by 1.42% and 2.14%, respectively, as against a 2.2% fall in Nifty Auto.
The export environment for Indian automobile companies has been tightening since December, when Mexico, one of India’s largest automobile markets, first announced steep hikes in tariffs on imports of passenger vehicles and two-wheelers. South Africa is also considering raising import duties on passenger vehicles from 25% to 50%.
This comes at a time when the auto ancillary sector has had to face steep tariffs in the US, which is one of the largest markets for exports of automobile components from India.