
Tata Motors Returns to South African Car Market After Six Years
After being absent from South Africa’s passenger vehicle market for six years, Tata Motors is re-entering the market and launching four new combustion engine models including the Punch compact SUV, Curvv crossover SUV, Tiago hatchback, and Harrier premium SUV. The flagship models will be launched throughout the month of September 2023.
Tata hopes to capture a market share of 6 - 8% and to return to the ranks of the top five passenger vehicle brands in South Africa. Tata Motors is engaged with Motus Holdings to oversee sales, aftersales, financing, and distribution. Initially, the cars will be sold through 40 dealerships with a plan for expansion to 60 dealerships by 2026.
This move comes at a time when Tata will face increasing competition from favorable Chinese automakers such as Chery, BYD, Beijing Automotive, and GWM. Although Tata Motors withdrew from the passenger vehicle market in 2019 due to disappointing consumer tastes, it has continued commercial vehicle production. Tata leaders flas say that the knowledge gained has allowed them to do a better job of addressing the South African market.
Phase two will have the addition of models such as the Nexon and Sierra SUVs. With enthusiasm to purchase budget affordable cars on the rise, Tata Motors believes the timing is right and as a result of their new offering, Tata Motors is in a better position to achieve success than in the past.