India’s car manufacturing giant Tata Motors is looking to take on its Chinese counterparts in the fight for market share in the SA passenger car market. This comes after a six-year absence and thrusts it into a crowded market with deepening South-South economic ties.
Tata Motors’ passenger car division says it will bring a slate of SUVS and budget models designed for African conditions and backed by SA’s largest car showroom owner, Motus, under an exclusive distribution deal.
“SA is an important market in our global expansion journey,” said Yash Khandelwal, head of international business at Tata Motors Passenger Vehicles, signalling a price offensive in a market where Chinese rivals such as Haval and Chery are redefining things and prompting Western-backed brands to call for state intervention.
“We will deliver a distinctive and future-ready mobility experience, backed by attractive pricing, competitive financing and industry-leading aftersales support,” Khandelwal said.
It is a high-stakes comeback to the passenger car market after a 2019 strategic retreat by Tata, which already has a presence in SA via its trucks.
It comes just a day after Indian rival Mahindra launched its new vehicle assembly facility at the Dube TradePort special economic zone in KwaZulu-Natal. The plant is expected to produce more than 1,000 bakkies a month.
Mahindra earlier this year partnered with the Industrial Development Corporation to launch a feasibility study into building a full-scale manufacturing plant in the country.
Tata Motors Passenger Vehicles said it plans to introduce a range of cars and SUVs, “tailored to SA conditions, backed by a well-established dealer network and robust after-sales support”.
Tata’s return and Mahindra’s investment underscore a broader shift in global capital flows towards South-South trade and investment. With SA a key Brics member, India is capitalising on political ties to deepen industrial footholds, while Pretoria has become the battleground where rival visions of development and trade are being tested.
Chinese brands have made serious inroads in the SA market over the past five years. SA consumers have embraced the expanding range of Chinese vehicles available in the local market as these brands offer a range of makes and models at competitive price points, making them compelling alternatives to traditional household brands.
The latest Chinese entrant in the domestic market, Jetour, launched in September 2024 with 40 showrooms nationwide.
Standard Bank has said Chinese car brands were defying market challenges in SA, having registered sales growth consistently since 2022, with Haval emerging as the most popular brand, followed by Chery and BAIC.
Combined Motor Holdings CEO Jebb McIntosh, in the group’s latest annual report, said local producers were under pressure from Chinese and Indian imports and warned of job losses should help from the government not come through.
“At the manufacturer level, the unrestricted proliferation of Chinese and Indian vehicle imports has placed extreme pressure on local producers, and many jobs may be lost unless there is more government support,” McIntosh said.
“Making matters worse for motor manufacturers and retailers has been the phenomenal entry of importers, with the result that though the market has shown no growth in five years there are a dozen more players vying for a share.”
The traditional dominant players have responded to the changing market dynamics.
Ford is more focused on the light commercial market, while Nissan is no longer producing its popular half-tonne and one-tonne pickups.
Volvo’s stated intention to focus on electric and hybrid models has hampered its local attraction. Its dealer network has been cut from 25 to seven and will be only in major metropolitan areas.
Correction: August 14 2025
A previous version of this story referred to Jebb McIntosh as CEO of Motus; this is incorrect, he is in fact CEO of CMH.
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