Tata Motors returns to South African car market after six years

Tata Motors has re-entered South Africa’s passenger vehicle market after a six-year hiatus, launching three SUV ranges and a compact hatchback to compete with Chinese automakers. The new offerings include the Punch compact SUV, Curvv coupe-inspired SUV, Tiago hatchback, and the premium Harrier SUV, all equipped with combustion engines and set to go on sale from September. The company aims to capture a 6-8% market share and become one of the top five passenger vehicle brands in South Africa, according to Head of Tata Motors Passenger Vehicles (TMPV) in South Africa, Mr. Thato Magasa. Tata’s re-entry highlights growing demand for budget-friendly vehicles, particularly low-cost imports from India and China, while raising questions about the future of domestic production in the region.

Tata Motors plans a phased expansion, with its Nexon and Sierra SUVs set to join the lineup in the second phase, supported by a network of 40 dealerships, set to expand to 60 by 2026. Motus Holdings, South Africa’s leading automotive group, has been appointed as the exclusive distributor, handling import, distribution, and sales. Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, Mr. Shailesh Chandra, said Tata has tailored its products to meet South African market needs. The company’s return pits it against Chinese competitors such as Chery Group, BYD, Beijing Automotive, and GWM, which have grown in recent years by offering competitively priced vehicles with diverse powertrains. Tata retained its commercial vehicle operations in South Africa during its absence from the passenger car segment, providing a foundation for its renewed push into the market. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.