Indonesia has put on hold an order for 105,000 vehicles from India’s Tata Motors and Mahindra & Mahindra following pushback from policymakers, Bloomberg reported.
Earlier this month, both companies had separately notified stock exchanges of the deal, describing it as the biggest export order ever secured by Indian automakers. Tata Motors was to supply 70,000 vehicles – 35,000 Yodha pick-ups and 35,000 Ultra T.7 trucks – through its Indonesian subsidiary PT Tata Motors Distribusi Indonesia. Mahindra had committed to supplying 35,000 Scorpio pick-up vehicles in 2026.
Cooperatives minister Ferry Juliantono announced on February 26 that imports of the vehicles – a mix of 4x4s and six-wheeler lorries – would be suspended pending a meeting between the government and lawmakers.
Spokespersons at both Tata Motors and Mahindra & Mahindra said they had not received any formal communication from the Indonesian government on the matter, declining to comment further.
The halt comes at a difficult time for Indonesia’s auto sector. Car sales fell 7.2 per cent in 2025 to 803,687 units, weighed down by weak household spending and cautious lending.
