Tata Group acquires car plant in South Africa
The Times of India — March 7, 2007

Tata Group on Monday said it has acquired a car making plant in Pretoria in South Africa. The company did not disclose the amount involved in the deal. The plant will be used as a base for Tata Motors exports to Europe, besides catering to the South African market.

Speaking to journalists at the Geneva Motor Show, Tata Group chairman Ratan Tata said that it was a "ready plant" in South Africa which was vacated by Nissan. "We will start assembling Indica and Indigo shortly from there," Tata said.

South Africa and the European Union have a trade agreement which enables zero duty free trade between the two partners, Tata officials said.

Ravi Kant, MD, Tata Motors, said the commercial due diligence for the plant was currently on and product roll out schedule would be announced on completion of the work. The plant was acquired by Tata Africa, a subsidiary of Tata International.

Ratan Tata revealed the concept car Tata Elegante at the motor show. "This car will act as a styling base for Indica and Indigo," he said. Tata is planning to replace the existing B Segment Indica with an all-new look in 2008. "Six months from the launch of the new Indica we will launch the new Indigo. After that, you will see the migration of the car to the D segment."

Tata Elegante is larger than current Indigo Sedan, is conceptualised to incorporate a four cylinder transverse petrol and diesel engine from 1.4 litres through 2.0 litres and a compact V6 petrol power unit. Transmission options include 6-speed manual and automatic gear boxes. Power will vary from 90 to 200 PS with a torque of up to 200 Nm. Also displayed at the motor show was a Tata Pick-up fitted with a 2.2 litre, 140 PS common rail diesel engine.

Parallel work is also on at the Ranjangaon plant of the joint venture between Fiat and Tata.