Oka aims for Indonesian, Malaysian armies

By Neil McDonald

AUSTRALIA's rugged four-wheel drive Oka vehicles looks set to become a preferred military transport vehicle in both Indonesia and Malaysia.

Apart from the Indonesians, the Malaysian army is looking at buying the 2.5-tonne full-time four-wheel drive turbo-diesel machines to use as transport vehicles in diverse and difficult terrain.

The Oka Motor Company, a specialist four-wheel drive vehicle manufacturer based in Perth, Western Australia, has been working on selling its vehicles into South-East Asia for the past year.

The company's Asia push is also part of a world-wide export strategy to sell most of its vehicles overseas. Up until recently about 80 per cent of its vehicles were sold only in Australia.

Oka is confident that over time, this will change and more Okas will be exported.

Oka officials have also just handed over a prototype "rural transport vehicle" - RTV - to Hindustan Motors in India.

Hindustan has entered a joint-venture deal with Oka to develop the RTV for the Indian market.

It was designed and developed for Hindustan to carry both passengers and goods and will be powered by a 2000cc Isuzu diesel engine.

Oka's chief executive, Mike Walker, was in India to hand over the RTV. It will be produced at Hindustan's Indore plant.

The first batch of 600 vehicles is expected off the production line next April.

To make the vehicle more affordable and ensure a steady supply of spare parts, 98 per cent of its components will be manufactured in India.

For Hindustan Motors, the Oka collaboration is the result of 2 1/2 years of research into transport needs of rural India, where rising incomes and the increasing demand for consumer goods are expected to ensure a healthy market for utility vehicles.

Buoyed by the India success, Oka's operations manager, Mr Kim Hough, said he was optimistic about Oka's future in Indonesia and Malaysia.

"The Indonesian military love it," he said. Indonesian military officials have test driven the vehicles in Perth. Four Okas are also on evaluation in Indonesia.

Mr Hough, said the Oka's rugged build and reliability was ideal for military applications.

"It has really started to open doors for use in Asia," he said.

"The Indonesians are very impressed with the vehicle.

"They said that in comparison with what they use at present, the Oka's the way to go.

"We expect to get some big contracts out of this."

The only hurdle standing in the way of Oka's Indonesia push is the issue of the country's tariff regime.

However, Mr Hough said the Oka was confident of working through this and delivering both SKD and CKD kits to Indonesia.

"And in the longer term we'd also still look at manufacturing in Indonesia," he said.

Apart from Indonesia and Malaysia, Oka is pursuing other markets in South-East Asia and has even ventured into Africa.

The South African police have taken a shine to the big beasts and Oka is confident of selling some there.

"We look like we'll make big inroads into the tourism industry there as well," he said. Mr Hough said the Okas were perfectly suited to South Africa as the country was similar in many ways to Australia.

Oka's vehicles are considered a must for many mining companies and tourism operators in Australia because of their ground clearance, reliable 4.0-liter turbo-diesel Perkins engines, ability to carry big loads and passengers.

The forward control vehicle is built on a ladder-frame chassis and offers a wide variety of body styles, from single to double- cab bodies and up to a 13-seater bus.

Oka expects its rising international profile to get another big lift soon as the company is hoping to sell about 1000 Okas to an as yet unnamed Middle East country.

Some of their vehicles are already being evaluated on the roads in Saudi Arabia.

If the deal goes through Mr Hough said the Perth factory would need to increase production and staffing levels to meet demand.

With Oka's growing international presence, Mr Hough said the company was also aware of the demands for dealers and servicing.

"Internationally we have 21 dealers. A lot of them out there in the mining, tourism areas," he said.

This financial year, Oka will produce about 250 vehicles.

"That's at the very least," Mr Hough said.