Tata’s African strategy is examined here in South African newspaper Business Day.
Notable is the comment from Econometrix pundit Tony Twine, who says of Tata’s plans to establish a local assembly plant: “Anyone contemplating vehicle assembly in SA without the intention to export will find themselves in trouble sooner or later, because of the restrictive size of the local market.”
We wonder just what will be manufactured at Nissan’s old assembly plant – recently acquired by Tata – and where the output is going to end up. A truck plant producing vehicles for a right hand drive market, now owned by a company allied to Fiat, and likely to get close to Iveco.
The Business Day report makes this point with some clarity: “By bringing vehicle production to SA, Tata may benefit from a trade agreement SA has with the European Union, through which it will enjoy a favourable import-duty environment.”
Watch this space.