Maruti Suzuki is the latest Indian automaker to consider setting up a plant in South Africa. The company could use the planned facility for supplying neighbouring markets.
A Maruti official told the Financial Express, “An internal team will look at the feasibility of a plant in South Africa and a decision should be taken in four to five months. We see a lot of potential in Africa where there’s a market for around a million cars, half of which is in South Africa itself. We have not yet decided if it will be an assembly plant or a full manufacturing hub for the region.”
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Africa became the largest export destination for Maruti cars in 2012, replacing Europe which continues to face economic troubles.
Maruti’s chairman RC Bhargava said, “It doesn’t make a difference today if Suzuki invests directly or we do. A viability study is needed as we need to consider several factors before a plant in South Africa is finalised. Exports also need to go up as South Africa itself is a big market.”
Mahindra is said to be eyeing partnerships for passenger vehicle assembly from knocked-down kits. In 2011, Tata Motors opened a commercial vehicle assembly plant in South Africa under a JV with a local partner.
