Tata Motors to Re-Enter South Africa’s Car Market

In what could be a boost to car exports from India and the company’s export ambitions, Tata Motors is set to re-enter South Africa’s passenger vehicle market with mass market sports utility vehicles and hatchbacks. The automaker, which had stopped exporting cars to the African market in 2017-18, is now planning a return with a launch event scheduled for August 19, CarMag reported.

Tata Motors Passenger Vehicles has appointed South Africa’s leading passenger vehicle retailer Motus Holdings Ltd as its exclusive distributor of passenger vehicles for this. The release noted that Tata Motors will also focus on local value creation in South Africa by supporting employment across sales, service, parts distribution, and technician training.

“South Africa is an important market in our global expansion journey. With our class-leading products and a reputed partner in Motus, we are here to offer our South African customers a choice of vehicles that are safe, stylish, and innovation-driven,” Yash Khandelwal, head of International Business at Tata Motors Passenger Vehicles, said.

“The range to be released in South Africa will boast segment-leading safety across SUVs, crossovers and entry-level compact hatchbacks,” Motus said, indicating that Tata Motors could be offering models such as the Punch, Tiago, Curvv, and Harrier, which are manufactured in India. 

Tata Motors' re-entry into South Africa comes at a time when the automaker is witnessing intense competition in the Indian market, especially from Mahindra & Mahindra and Hyundai. Compared to other major OEMs in India, Tata Motors’ passenger vehicle sales in mostly focused on the domestic market with very little exports.

South Africa is one of the top export markets for OEMs manufacturing in India. India-origin cars and light commercial vehicles are estimated to account for one in two vehicles sold in South Africa. The country remains a market of focus for companies as Maruti Suzuki, Mahindra & Mahindra, Hyundai and Nissan.

Though Tata Motors has been selling cars in South Africa, the automaker exports commercial vehicles to the country.