Wednesday, November 9, 2011

Tata Motors eyes Tata Aria export push to South Africa

Hot on the heels of M&M launching its XUV 500 in South Africa, automaker Tata Motors is testing its cross-over Aria to be shipped to South Africa too.

The aggressive stance adopted by domestic carmakers to push exports comes as a no surprise since the South African auto market is growing at a rate of 20 per cent. Dwindling homes sales also contribute to this strategy.

"It is also important to understand that that part of the world is going to attract a lot of investment in terms of cost of production coming down and labour being cheap," said Gaurang Shah, Asst Vice President at Geojit BNP Paribas Financial Services.

In fact, sources indicate that Tata Motors is on the verge setting up a plant in Kenya to tap the demand in East Africa. Africa currently makes up nearly 15-20 per cent of the company's total exports.

Tata will soon begin exports of the Indica Vista and nano to these markets too and it’s also looking to step up the volumes on its CVs with models like the Super Ace, Prima trucks and the Marcopolo range of buses.

Tata Sons Chairman Ratan Naval Tata said always envisioned a hub and spoke operation for taking the Nano overseas. Now it is looking to employ the same for the entire passenger car range. Any success in Africa would provide a stepping stone to then using similar means in Latin America - another region Tata is eyeing with great interest.

Source: NDTV Profit

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