India’s car makers are gearing up to grow in South Africa, as several firms plan to turn existing assembly lines into full‑scale factories and open new plants. The move comes as the South African government pushes hard to lure big global automakers and boost its local industry.
South Africa’s Trade, Industry and Competition Minister, Parks Tau, said Indian and Chinese automakers have shown strong interest in boosting their investments in the country. Tau is meeting with many automakers to revive the local auto sector, which has been hit by falling export demand, cheaper imports and infrastructure challenges.
Export pressure has been rising after the United States slapped tariffs on cars, and the European Union is set to ban internal‑combustion vehicles for new sales. These developments have pushed South Africa to focus on new energy vehicles (NEVs) and attract investment in electric mobility.
According to Tau, Indian and Chinese companies are ready to partner with existing local automakers. They plan to use spare manufacturing capacity and set up new factories. Currently operating in a semi‑knocked‑down (SKD) mode, many firms have committed to shifting to complete‑knocked‑down (CKD) production, which means full‑scale local manufacturing.
The government is also talking with major global players like Toyota and Ford to secure the future of South Africa’s automotive industry. They aim to address falling production volumes, competition from China, tariff uncertainties and the high costs of switching to electric vehicles.
Among the Indian firms, Mahindra already confirmed it will upgrade from SKD to CKD production in South Africa to boost local output and create a regional export hub. Mahindra also plans to set up electric‑vehicle assembly lines in Durban, in line with the country’s push for a stronger manufacturing base.
Tata Motors, which had stopped exporting to Africa in 2017, is making a comeback. Through a partnership with Motus Holdings Ltd., South Africa’s largest passenger‑vehicle retailer, Tata will once again distribute its cars in the region.
Source: ianslive
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