Leading Indian automaker returns to Africa's richest car market after six years
Tata Motors has re-entered South Africa's passenger vehicle market after a six-year absence.
The company introduced four combustion-engine models: Punch, Curvv, Tiago, and Harrier.
Tata aims to achieve a 6%-8% market share and become a top-five passenger car brand in South Africa.
The relaunch occurs amidst competition from Chinese rivals and dynamics in South Africa's automotive industry.
India's Tata Motors has re-entered South Africa's passenger vehicle market after a six-year hiatus, unveiling three SUV models and a budget hatchback in a bid to compete with Chinese rivals.
The company introduced the Punch compact SUV, the Curvv coupe-inspired SUV, the Tiago hatchback, and its flagship Harrier premium SUV, all powered by combustion engines and set to go on sale in September.
Tata, which quit the market in 2019 after mixed reviews of its Indica hatchback, is betting on rising demand for affordable cars in Africa's most industrialised economy, according to Reuters.
Thato Magasa, the newly appointed head of Tata Motors Passenger Vehicles in South Africa, said the company aims to rank among the country's top five passenger car brands in the mid-term, targeting a 6% to 8% market share.
The relaunch puts Tata in direct competition with Chinese manufacturers, including Chery, BYD, BAIC, and Great Wall Motors, which have gained ground in recent years with competitively priced offerings.
As part of its second phase, Tata plans to introduce the Nexon and Sierra SUVs and expand its dealership network from 40 to 60 by 2026. Distribution will be handled exclusively by Motus Holdings, South Africa's largest automotive group.
Industry growth, mounting challenges
Interest in South Africa's automotive sector is growing. Alongside Morocco, the country is Africa's top vehicle producer, according to the International Organisation of Motor Vehicle Manufacturers. South Africa built 599,755 vehicles in 2024, a 5% decline from the previous year, ranking 20th globally.
The output still falls short of the 784,509-unit target set under the South African Automotive Masterplan 2035.
The industry already hosts seven major manufacturers, including Volkswagen, Toyota, and Mercedes-Benz. Business Insider Africa recently reported that Japanese automaker Isuzu Motors is also positioning South Africa as its continental hub for commercial truck production.
However, there are also challenges. Low domestic sales of locally assembled cars, coupled with sluggish local content levels, have already forced 12 company closures
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