INDIA BUSINESS WORLD - APRIL 1st - APRIL 15th - 2008
TATA MOTORS BUYS NISSAN’S AFRICA PLANT
In a bid to expand its global footprint, Tata Motors has acquired Japanese auto giant Nissan’s Pretoria-based manufacturing plant for an undisclosed amount. The Nissan plant, which has been unused for a while, has been acquired by Tata Africa Holdings.
Sources say this is part of Tata Motors’ overall strategy to get into assembly and manufacturing in its important export markets outside India. Currently Tata Motors caters to Africa and its neighbouring markets from its operations in India, said Tata Motors ED commercial vehicles P Telang. Bangladesh is the only other commercial vehicle assembly unit the company has outside India.
It is not clear if Tata Motors will use this South African unit for trucks and its cars like Indica and Indigo. Initially it will start with assembly operations and then get into manufacturing its line of products , Mr Telang said .
“South Africa is a major market for us and we cater to a number of markets like Tanzania, Zimbabwe, Malawi, Namibia, Mozambique, Uganda and Ghana,” said Mr Telang. The company will use South Africa as a sourcing base for components.
Tata Africa has a presence in over 10 African countries with investments exceeding $100 million. A subsidiary of Tata International, the company, with a turnover of $1.6 billion, was established in Johannesburg, South Africa, in 1994.
Meanwhile Tata Motors saw a 6% jump in its total vehicle sales (including exports) during March 2008 to 66,495 units, against 62,779 units. Exports in March stood at 5,765 units, down 9%, against 6,299 units.
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