The company said it is tracking a possible review of South Africa’s import tariffs on Indian-made vehicles, with duties reportedly rising to as high as 50%.
29 Jan 2026 | 232 Views | By Shahkar Abidi and Ketan Thakkar
Tata Motors Ltd. is keeping a watchful eye on Pretoria. Just as the Indian automaker celebrated a staggering 70% year-on-year surge in its commercial vehicle (CV) exports, a new geopolitical challenge has emerged on the horizon: a potential overhaul of import taxes in South Africa.
The company, which on ...
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Tata Motors Ltd. is keeping a watchful eye on Pretoria. Just as the Indian automaker celebrated a staggering 70% year-on-year surge in its commercial vehicle (CV) exports, a new geopolitical challenge has emerged on the horizon: a potential overhaul of import taxes in South Africa.
The company, which on Thursday reported its third-quarter financial results for fiscal year 2026, confirmed it is closely tracking signals from South African authorities regarding a review of import tariffs on Indian-made vehicles. Early reports suggest these duties could climb as high as 50%, a move that could significantly alter the cost of doing business in one of Africa’s most developed economies.
The proposed measures appear to target "completely built-up" (CBU) vehicles—industry shorthand for cars and trucks that are manufactured entirely in one country and shipped ready-for-sale to another. While the current focus of the South African review seems to be on passenger cars, the lack of definitive clarity has left commercial vehicle manufacturers like Tata in a state of high alert.
"The recently signaled intent to review and potentially revise the import tariffs on vehicles from India is a development which needs monitoring," said Girish Wagh, Managing Director and CEO of Tata Motors Ltd., during a briefing with media. "Nothing is yet final... we continue to engage with the relevant stakeholders there to understand how these things are going to go ahead."
Tata Motors maintains a strategic advantage in the region: a local assembly plant in Roslyn, Pretoria. By assembling vehicles locally rather than shipping finished units from India, the company may be able to bypass some of the harshest impacts of a "ready-to-drive" import tax. Currently, the South African market accounts for roughly 5% of Tata’s total truck export volumes, primarily in the 7 to 28-ton range.
The Global Chessboard: South Africa and Brazil
The situation in South Africa mirrors a broader trend among emerging "BRICS" economies including Brazil which are increasingly using trade barriers to bolster domestic manufacturing. This 'local-first' approach presents a double-edged sword for the Indian auto industry. On one hand, it threatens the high-margin export of finished vehicles; on the other, it rewards companies like Tata Motors that have already invested in local infrastructure.
Record Growth Amid Uncertainty
Despite the looming tariff shadow, Tata’s international business is currently firing on all cylinders. The 70% jump in quarterly exports was fueled by a recovery in the SAARC region (specifically a rebounding Sri Lankan market) and strong demand for buses in the Middle East and North Africa (MENA).
To sustain this momentum, Tata has overhauled its product portfolio. The company recently launched 17 next-generation trucks and a new range of Euro 6-compliant vehicles, meaning they meet the world’s strictest emission standards. Furthermore, all of the company’s new truck cabins now meet stringent European safety standards, a move intended to make Indian trucks more competitive in sophisticated global markets.
The Road Ahead
As it waits for the final word from South African regulators, the company is also looking toward Europe. A pending acquisition of EVECO is on track to close in the first quarter of fiscal year 2027, which Tata expects will provide landed price benefits and new top-line opportunities within European trade blocks.