Tatas, M&M plan more rollouts in SA

Two of India's leading auto companies, Tata Motors and Mahindra and Mahindra (M&M) are ramping up their presence in South Africa with new launches, as well as setting up assembly line-ups there.

Ravi Kant, managing director, Tata Motors, said, "The market in South Africa is very good and is growing at a consistent pace. We also want to grow in that country and are planning to use the recently acquired Nissan plant as a manufacturing facility for trucks, or cars, or both. Production could start in 12-18 months."

Tata Motors sells Indica and Indigo cars, pick-up trucks and long-haul high capacity trucks, that are exported to SA through its subsidiary Tata South Africa.

The automobile market in South Africa grew by 15.7 per cent in 2006, with 7,14,340 cars, utility and commercial vehicles sold. Comparably, the Indian auto market grew by 23.66 per cent in 2006-07, during which period 1,847,580 units (excluding two- and three-wheelers) were sold.

M&M, India's leading utility and tractor manufacturer, has also decided to launch its high-end tractors, followed by trucks and trailers, in SA within the next few weeks.

Official launch dates for trucks and trailers is yet to be decided. Tractors will be introduced within the next eight weeks through its 100 per cent subsidiary Mahindra South Africa.

Pravin Shah, executive vice-president international operations, M&M, told the Business Standard, "We will start exporting tractors (and tractor engines and components) to South Africa in the next two months. It may even happen within two weeks. These tractors will be specially developed products for the European and other developed markets." The tractors will be in the range of 50-70bhp.

M&M will also gradually introduce its commercial vehicles, with models ranging from 3.5 tonne medium trucks to tractor-trailers and even a 15- to 30-seater minibus. Shah declined to disclose details on the time frame for these launches.

Exports to South Africa constituted 53 per cent of Mahindra's total exports of 8,021 units from India in the last fiscal.

The company now sells the Bolero and Scorpio range of utility vehicles through 36 dealerships there.

It even sells pick-up trucks, including a Scorpio pick-up which has not been launched in the Indian market.

Tata Motors and M&M do not have full-fledged manufacturing facilities in SA, but both are keeping a close eye on the market's flexibility and its growth which could lead them to invest in production line-ups.