Tata to install an assembling unit in SA

A truck assembling unit may be erected by Tata in South Africa this year end, said a company official. The Head for India said the assembling unit, in addition to the ones in Thailand and Bangladesh, will be for medium and small end trucks with an initial capacity to be 3000-4000 units per year. South Africa imports 2000-3000 units from Tata every year. Tata’s net export of trucks in 2009 was 30000 units and this year’s export seems prospective for the company.Tata holds the largest share in truck market in India with 60% and is looking for an increase of 10-15% in domestic market during next year. The sale in 2009/10 was 373 615 units of trucks an increase of 41% from the previous year’s sale. Tata’s performance in the share index too is good as its net value stood at $9.1 billion with Rs769.45 and the main index ending down with 0.9%.

Tata is too happy with its five year stint in truck market with its Ace and likes to hold its position by launching new products. Tata is conscious about the India’s position as the fourth largest truck market wherein the presence of global and local makers is prominent. Among the Indian makers, M&M launched its truck Maxximo last year to counter Ace and soon GM, in association with the Chinese SAIC, will deliver a truck in the next year; Nissan under a JV with Ashok Leyland, is to enter this sector in 2011 and Germany’s Daimler too join in 2012.

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