Tata Motors – the maker of Nana low cost vehicles plans to set up a vehicle assembly plant in Kenya.
According to media reports, the India automaker is expecting to churn up to 5,000 units of pick-ups and light commercial trucks as the twin brands emerge the fastest selling units in the region.
Tata will shift the business rivalry between China and India to East Africa as the twin nations have competed vigorously over trade, energy investments, even border tensions.
“We are looking at establishing an assembly plant in either Kenya or Tanzania in the short-term, but Kenya appears to have better in frastructure,” said Naresh Leekha, the executive director of Tata Africa.
TATA is a currently enjoying a rise in sales of trucks and concrete mixers mainly in Kenya’s booming construction industry. TATA’s foray into Kenya brings with it employment and cheaper locally assembled units.
“Local assembly will give us a price advantage that we expect will lift our market share in the commercial trucks market from the current fourth position to the third position.”