To capture the demand in East Africa, Tata Motors’ African subsidiary, Tata Africa, in 2012 is planning to build a motor vehicle assembly plant in Kenya. The company reportedly plans to invest 2 billion Kenyan shillings (Rs. 108 crore) on the new plant.
According to Business Daily newspaper, Tata Africa plans to assemble pick-ups and light commercial vehicles. At present Tata Motors is operating in Africa through a joint venture with Tata Africa Holding (Pvt.) Ltd., called Tata Motors (SA) (Proprietary), but it is not known if the new assembly plant in Kenya will also operate as a joint venture between Tata Motors and Tata Africa.
Africa of late is emerging as one of the prominent markets for vehicle manufacturing and Tata Motors’ pick-up and LCVs are the gaining a popularity in the region. Apart from competing with Kenya Vehicle Manufacturer which currently dominates the region, the company in the East Africa region will also compete with Chinese companies such as Chery Automobile and Beiqi Foton Motor.
