South Africa is fast becoming a major export hub for majority of Indian automobile players. After making a mark for themselves in this market, India?s top two commercial vehicles (CV) majors Tata Motors and Ashok Leyland (ALL) are planning set up their own assembly lines there.
For Tata Motors, South Africa is the largest export market today and has aggressive plans for growth. Ashok Leyland too feels this market could add significantly to their future export portfolio. ALL is expected to set up an assembly plant with a local partner.
Speaking to FE recently, Dheeraj Hinduja, co-chairman, ALL said, ?We cannot service this market only by exporting CBUs. We need to go and set up a facility there, probably an assembly plant. We are in the final stages of some interesting options before us.?
Tata Motors has been in the market since 2004. It offers passenger cars (Indica and Indigo) and CVs (Tata Telcoline, Tata Novus, Tata LP 713S, Tata LP 713S) in the market and has reportedly sold over 20,000 units in FY 07. Prakash Telang, executive director (commercial vehicles), Tata Motors said, ?We are looking at setting up assembly plant very seriously. The decision on this could be taken soon.? The company is already working on an advanced version of the highly successful Ace to be launched in South African market next year.
ALL is also coming up with a wider product portfolio and is expected to have a range of products like the cab range, luxury buses, mini buses etc. ?We have made an entry, but so far, we haven?t had the right product range. The South African market really has substantial potential. We hope in 2008, with our newer products, we will have a much stronger presence in that market,? added Hinduja.
Speaking on the market potential there, VG Ramakrishnan, director, automotive and transportation, Frost & Sullivan said, ?Both on the technology and regulations level, there is not much difference between the two nations, so many Indian companies are queuing up to get into this market. There is great acceptance amongst the locals for Indian-made products.?
