Indian motorcycle producer TVS Motor Company has vowed to make Indonesia as its production base in Southeast Asia, with production set to begin in early 2007, a local newspaper reported Tuesday.

Having invested 43 million U.S. dollars to build a factory in Indonesia, TVS aims to sell mostly moped models from its local factory, whose production capacity is estimated at 300,000 units a year, reported Bisnis Indonesia .

TVS director BLP Simha has said the factory construction in the West Java town of Karawang was near completion.

"The factory is expected to begin operations early 2007, and before November 2007, product sales begin," he said Monday.

The factory will also manufacture scooters and sport models.

Indonesian motorcycle market is dominated by Japanese producers.

Motorcycle sales in the first eight months of the year totaled 2.65 million units, of which the trio motorcycle giants -- Honda, Yamaha and Suzuki -- made up of more than 2.5 million units.

Source: Xinhua