Tata re-enters SA passenger car market after six year absence

The Indian car manufacturer has teamed up with Motus to launch four passenger vehicles to the SA market. From Moneyweb.

A lot has happened since Tata passenger vehicles left SA. Internationally, sales have increased 350% from 170 000 in 2020 to 560 000 units in 2024. Image: Supplied

Indian car manufacturer Tata Motors Passenger Vehicles (TMPV), a subsidiary of Tata Motors, has returned to SA after a six-year absence with the launch of four models – the Tata Harrier, Curvv, Punch, and Tiago – to be distributed through a network of 40 Motus dealerships.

Tata Motors Passenger Vehicles exited SA in 2019, though the commercial truck and bus division kept operating.

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The re-entry to the passenger market appears timed to ride the wave of SA consumers buying down due to economic pressure. Feature-rich Chinese vehicles now account for about a third of SA’s car market, with the average price hovering around the R500 000 mark. Tata’s new models aim to capitalise on this trend towards more affordable, budget-friendly vehicles with modern features.

A lot has happened since Tata passenger vehicles left SA. Internationally, sales have increased 350% from 170 000 in 2020 to 560 000 units in 2024.

The tie-up with SA’s largest automotive company, Motus Holdings, will initially provide Tata with a network of 40 dealerships, expanding to 60 by 2026, to provide countrywide customer support and after-sales service.

Tata says it has bold ambitions to become a leading name in the South African passenger vehicle market.

The Tata Harrier is a mid-sized SUV powered by a 2.0l turbocharged engine and a six-speed manual or automatic gearbox with a touchscreen infotainment system. It competes with the likes of the Volkswagen Tiguan and Jetour Dashing. The Harrier targets the growing SUV market, which now accounts for 50% of sales in SA, with fuel efficiency that pits against Chinese brands like Chery and established players like Toyota. A key selling point for the Harrier is the safety profile, including six airbags and corner stability control.

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The Tata Curvv is a crossover coupe-SUV with a 1.2l turbo-petrol engine. Customers can choose between a six-speed manual or a seven-speed automatic transmission.

The compact Punch has a 1.2l petrol engine and is designed for city commuting. The entry-level model is the Tata Tiago, also with a 1.2l petrol engine and a choice of manual or ATM (automated manual transmission) gearboxes.

TMPV says its re-entry to the local market will benefit the local economy by investing in skills development, job creation, and training programmes for technicians, sales professionals, and aftersales teams. “Additionally, strategic partnerships with leading financial institutions will offer competitive financing solutions, making high-quality mobility more attainable for South African consumers,” says the company in a statement.

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Speaking at the launch, Shailesh Chandra, MD at Tata Motors Passenger Vehicles, said the return to the SA market is part of its global expansion journey. “We are excited to bring our new generation of vehicles – designed with cutting-edge technology, uncompromising safety, and modern design – to a market that values quality and innovation. With Motus as our preferred partner, we are confident in delivering a superior ownership experience that resonates with South African consumers and contributes meaningfully to the local economy.”

About Ciaran Ryan 1324 Articles
The Writer's Room is a curated by Ciaran Ryan, who has written on South African affairs for Sunday Times, Mail & Guardian, Financial Mail, Finweek, Noseweek, The Daily Telegraph, Forbes, USA Today, Acts Online and Lewrockwell.com, among others. In between he manages a gold mining operation in Ghana, and previously worked in Congo. Most of his time is spent in the lovely city of Joburg.