The Indian industrial giant Tata has confirmed that it intends investing an undisclosed amount in a vehicle assembly plant in Rosslyn in Pretoria. The Business Day newspaper reported on 6 July that the company plans to begin construction before the end of this month.
“We are not giving out any details now, but it’s been in the planning for some time,” said Tata’s spokesperson in Dubai. The local distributors declined to comment.
The news comes as a huge vote of confidence for the industry, not only because it comes in the middle of a recession, but also because of the recent industrial action that would have impacted on the feasibility of the project.
Earlier we reported on CMC Auto’s plans of building a US$1-billion (R7-billion) plant in Harrismith, where the company intends to build Chinese taxis and pickups – for both local distribution as well as exports to the rest of Africa and South America. Sceptics were quick to criticise the feasibility of the project, pointing to a saturated and limited market for Chinese vehicles in South Africa. But the latest plans by Tata confirm the large potential that Africa holds.
Tata has extensive operations in East and West Africa where its medium and heavy commercial vehicles are prevalent. CMC Auto also operates in these areas and company spokesperson, Imran Moola, confirmed that South Africa is an ideal springboard to the rest of the continent.
Further details on the planned investment are expected shortly and Tata is yet to confirm how large the investment will be and what it intends to manufacture. We expect that the company will probably manufacture an affordable light commercial vehicle (similar to the Telcoline), but it is also possible that the plant will produce medium or heavy commercials. Tata specialises in the production of affordable passenger and commercial vehicles, aimed at developing economies.
