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Tata Motors rides ahead in Africa

In a period of just three years, Tata Motors has emerged as the third-largest player in South Africa's commercial vehicles market, and one of the fastest growing brands in the passenger vehicles segment

Tata Motors has played a major role in Tata Africa's origins and current operations in Africa. The journey began in the 1970s with the marketing of Tata Motors' heavy vehicles in Zambia. In the 1990s, Tata Africa expanded its automotive operations to Tanzania, Zimbabwe, Malawi, Namibia, Mozambique, Uganda and Ghana. Today, Tata Motors' vehicles enjoy leading positions in several vehicle segments in South Africa and Zambia.

Tata Motors offers a range of passenger, multi-utility and commercial vehicles:

  • Passenger cars:
    The popular Indica
  • Commercial vehicles:
    Telcoline, an all-terrain vehicle suitable for both commercial and private use
  • Heavy commercial vehicles:
    Tata Novus' new range of Tata Daewoo tippers and tractors
    Tata Ubuntu and other bus models

Over the years, the company has established a strong distribution and marketing network with the help of various country-specific Tata Africa subsidiaries. In Ghana, operations cover both vehicle sales and after-sales. Tata Uganda, set up in 1994, conducts vehicle sales and after-sales business. In Mozambique, Tata De Mozambique Lda (TDML) is engaged in sales and service of Tata vehicles.

South Africa has played an important role in the success of Tata Motors in Africa. Launched in South Africa in 2004, the Indica set the record for the most successful car launched in the country. A bus-body fabrication plant was set up in 2004 to build indigenously designed buses that are now sold in Zambia, Ghana and Mozambique. The company enjoys a leading position in tippers, medium commercial vehicles (MCV) and heavy vehicles. Recently, Tata Africa Holdings has acquired a Nissan manufacturing plant in South Africa.

Sustaining its leading position in South Africa, the company recently introduced more commercial and passenger vehicle models:

  • Safari Dicor, to be available in early 2007.
  • Commercial vehicles, new trucks (6 and 10 tonners), tippers (2-6 cubic metre capacity) and bakkies (1.3-tonne flat-bed) are being launched. These vehicles are aimed at meeting diverse transportation needs in South Africa.

The new models are on display at Auto Africa 2006 in Johannesburg. Exhibited along with new models are, for the first time at the expo, two 'concept cars' — Tata Crossover, a 'crossover' vehicle concept, and Tata Cliffrider, a multi-utility 'lifestyle' vehicle. Speaking about the new models, Ravi Kant, managing director, Tata Motors, said, "Our endeavour now is to expand our range with improved applications, to reach out to more customers and build a lifetime relationship."

Future plans for South Africa are upbeat. "We are looking at increasing our logistical efficiency besides considering options to set up an assembly unit in South Africa. We are also looking at using South Africa as a source for components," says chief financial officer Praveen Kadle. The only commercial vehicle assembly unit the company has outside India is in Bangladesh. Tata Africa managing director, Raman Dhawan, defines future areas of growth and says, "Towards the end of this year, we would be entering the Nigerian and Kenyan markets with our range of commercial vehicles."

Apart from the stronghold the company has in South Africa, Tata Motors is among the top automotive players in other countries as well.

In Zambia, the company is at the forefront in the medium commercial vehicles segment. In Ghana, the company recently launched a range of passenger vehicles that includes the Indica hatchback, Indigo sedan and Indigo Station Wagon, along with the multi-utility vehicle Sumo and the Safari Dicor. According to Divyendu Kumar, head of Tata Motors' international business for the passenger car units, the new models will offer superior value to customers in the traditionally important Ghana market.

The company is also making progress in other countries such as DR Congo, Ivory Coast, Kenya, Madagascar, Senegal, Tanzania, and Uganda. It is looking at options such as setting up assembly lines, re-working its price and product positioning, improving logistics and accessing local sources.

The Tata journey in Africa, which began over three decades ago, has continued uninterrupted, with more milestones crossed and new strengths gained. Leading the way is Tata Motors, with its ever-expanding range of luxury and utility vehicles that promise a smoother ride ahead and more milestones to be crossed on the road to excellence.