Why Tata Motors Is Driving Back to South Africa After Six Years?

Tata Motors has made a comeback to South Africa’s passenger vehicle market after nearly six years. The Tata Group auto arm has launched three ranges of SUVs and an entry-level compact hatchback to take on Chinese rivals, including Chery Group, BYD, Beijing Automotive, and GWM. The launched vehicles will be up for sale from September, Reuters reported. 

“We have listened, we have learned, and we have tailored our offering to meet South Africa’s needs,” Managing Director, Tata Motors Passenger Vehicle (TMPV), Shailesh Chandra, said, according to Reuters. 

While the Tata Group has re-entered with the launch of three ranges of SUVs in South Africa, in its next phase of comeback, the auto company has planned to introduce its Nexon and Sierra SUVs, the new country head of TMPV, Thato Magasa, reportedly said. The auto giant has also planned to expand its dealership in the country from the present 40 to 60 by 2026, Magasa added. 

TMPV has appointed South Africa’s leading auto group, Motus Holdings, as its exclusive distributor. The group imports, distributes, and sells cars. 

Apart from Tata Motors, South Africa is a key market for auto companies like Mahindra & Mahindra, Hyundai, Nissan, and Suzuki.

Why Comeback? 

Tata Motors had first entered the South African PV market in 2004 with cars like the Indica and Indigo models. It later expanded its offerings to Vista, Safari and Aria. Later, the giant exited the market in 2019 but maintained its presence in the commercial vehicle segment. The exit was mainly due to mixed reactions from customers who mostly opted for rivals. 

Tata Motors’ re-entry has come around a time when South Africa’s passenger car market is projected to grow at 1.4% CAGR from $8.3bn in 2025 to $8.8bn by 2029, according to a German-based market intelligence platform, Statista. 

“From an international perspective, it is interesting to note that China is expected to generate the most revenue in the passenger cars market, with a projected revenue of $822bn in 2025,” the market intelligence platform stated. 

The development also comes around a time when South Africa’s new passenger car market has achieved sales growth not witnessed since January 2017. Its PV car sales increased from 30,176 units sold in July 2024 to 36,248 units in July 2025, according to NAAMSA (National Association of Automobile Manufacturers of South Africa) data. The growth is mainly driven by improving consumer confidence, favourable credit conditions, and a steady recovery in disposable incomes. 

“The July 2025 new passenger car market at 36,248 units, the highest monthly passenger car sales performance since January 2017, had registered an increase of 6,072 cars, or a gain of 20.1%, compared to the 30,176 new cars sold in July 2024,” NAAMSA stated.