India's Tata Motors returns to South African car market after six years

[JOHANNESBURG] India’s Tata Motors returned to South Africa’s passenger vehicles market after a six-year absence, launching three ranges of SUVs and an entry-level compact hatchback to take on Chinese competitors.

Growing demand for budget-friendly cars is luring global automakers to offer consumers more options, in a shift that spotlights rising reliance on low-cost imports from India and China, but puts a question-mark on future domestic production.

“Our aspiration, as part of our mid-term plan, is to be one of the top five passenger vehicles in South Africa, with a 6% to 8% market share,” Thato Magasa, the new country head for Tata Motor Passenger Vehicles (TMPV) said at Tuesday’s launch.

Tata unveiled the Punch compact sports utility vehicle (SUV), the Curvv coupe-inspired SUV, the compact hatchback Tiago and its flagship premium SUV Harrier, all combustion engine cars that go on sale from September.

Its return pits Tata against a rising tide of Chinese automakers such as Chery Group, BYD, Beijing Automotive and GWM, which have offered competitively priced vehicles with different powertrains in recent years.

Tata exited the passenger vehicles market in 2019 after selling brands such as its Indica hatchback, some of which were affordable but drew mixed reactions from consumers who opted for rivals.

It retained commercial vehicle operations in South Africa, however.

“We have listened, we have learned, and we have tailored our offering to meet South Africa’s needs,” Shailesh Chandra, managing director for TMPV and electric mobility, said at the event.

In the second phase of its re-entry, Tata plans to bring its Nexon and Sierra SUVs to South Africa, operating through 40 dealerships nationwide, with plans to expand to 60 by 2026, Magasa added.

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Tata’s passenger car division has appointed as its exclusive distributor Motus Holdings, South Africa’s leading automotive group, which imports, distributes and sells cars. REUTERS