The Tata Group is planning to set up an assembly plant in Kenya, a Mumbai newspaper has said, quoting a local Kenyan daily. The plant will assemble pick-ups and light commercial vehicles.

The Tatas will reportedly spend Rs 100 crore to set up the plant. By setting up a local plant, Tata will be able to obtain a price advantage that will help increase its presence in the African continent, a Tata source was quoted as saying. As far as the location is concerned, the source indicated that it is a toss-up between Tanzania and Kenya.

In Africa, Tata will have to compete with the Chinese. Beiqi Foton, which recently forayed into the Indian market, is reportedly building a plant in Nairobi, the Kenyan capital.

Four months ago, Tata Motors (SA) (Proprietary) Ltd, Tata Motors’ JV with Tata Africa Holding (Pty) Ltd, inaugurated its assembly plant in South Africa at Rosslyn, north of Pretoria. Set up at a cost of Rs 7.2 crore, the plant is assembling the Tata LPT 813 and LPT 1518, both already popular in South Africa.