Power and fuel efficiency is equally important — the power notes for South Africa are different to India. The road infrastructure in South Africa is fantastic, the speeds at which people drive are much higher than in India. Braking efficiency is significantly higher as speeds are higher.
He also acknowledged the importance of connectivity, referencing the launch of Tata’s Fleet Edge virtual management system allowing business owners to track driver behaviour and vehicle performance.
Mehrotra provided a reminder of the Ultra’s local assembly in Rosslyn, Tshwane.
In addition to providing a range of products well-suited to market conditions, the brand’s growth strategy is also dependent on shrewd approaches to retail finance. A three-tier plan was outlined.
First involves traditional subvention with agreements with national banks, second involves captive finance solutions, provided by a Tata-owned company named Alliance Finance and the third is a white label solution powered by WesBank.
On the distribution model, Mehrotra confirmed there are 90 outlets across the country.
“There is a disproportionate mix of service centres rather than sales centres alone.”
“In service it is about uptime, which we can guarantee through a variety of mechanisms such as annual maintenance contacts, service packages and additional products bundled in — the Ultra has an extended five-year/500,000km warranty, which is quite significant, that is the confidence we have in the product.”
The executive did not share sales volumes comparisons as we had asked.
“We do not share volumes by country or by model. We are a listed company so must be conscious of the data we share,” he said, but added the sub-Saharan African region was among the fastest-growing for the brand.
“Trust in the brand is a major strength for Tata [locally], the relationship is tenured, why do people trust us?
“Tata Trucks are extremely reliable, as a consequence the value it delivers to the customer is high. Second, the experience we create in sales and after sales, there is a sharp focus on strong after sales — whether parts availability, service or affordability.
“Third is the ease of doing business with an Indian brand, unlike some other makes, where it is difficult to get a relationship. The ethos is different. A simple example is the level of customisation we are willing to do with finance.”
Asked where the brand could improve, he said there would be scope for more locally-assembled products in the market.
“In Tata Motors it is not about one mega initiative — it is about continuous improvement, building a business and proposition for our customers that will live for generations to come and we are on that journey, whether products, services or solutions, we will bring all three together to grow trust in the brand.”
How Tata plans to keep on trucking in South Africa
Tata’s commercial vehicle business arm in Sub-Saharan Africa is a story of consistent long-term growth.
This is according to Anurag Mehrotra, head of international business at Tata Motors Commercial Vehicles.
Mehrotra spoke to TimesLIVE Motoring from the company's Mumbai headquarters.
He mentioned four ingredients for their success in the region and the South African market: the right products, local assembly, a competent distribution partner and provision of accessible retail finance.
Tata Trucks traces its presence on the continent to 1977 when operations in Zambia were established. Today the firm operates in a dozen countries in the sub-Saharan region.
Different from the approach usually employed by original equipment manufacturers, Tata Trucks relies on a distributor-led model of business in the 45 countries it exports to.
Mehrotra believes after sales experience is more crucial than initial retail interaction, given the higher number of touchpoints once the sale has been concluded.
“Getting the right partner to represent the brand and take care of our customers is important,” he said.
On the back of the recent Ultra FE+ range of trucks, Mehrotra emphasised the importance of developing models for specific market requirements.
“It is no longer an acceptable norm to take a product that has been successful in other markets and lob it over without fully understanding consumers. We were clear about not wanting an India product [being sold unchanged].
“The comfort and convenience expected by consumers is different to India,” he said, citing conveniences such as a tilt steering, suspension seats and a walk-through cabin facility.
Power and fuel efficiency is equally important — the power notes for South Africa are different to India. The road infrastructure in South Africa is fantastic, the speeds at which people drive are much higher than in India. Braking efficiency is significantly higher as speeds are higher.
He also acknowledged the importance of connectivity, referencing the launch of Tata’s Fleet Edge virtual management system allowing business owners to track driver behaviour and vehicle performance.
Mehrotra provided a reminder of the Ultra’s local assembly in Rosslyn, Tshwane.
In addition to providing a range of products well-suited to market conditions, the brand’s growth strategy is also dependent on shrewd approaches to retail finance. A three-tier plan was outlined.
First involves traditional subvention with agreements with national banks, second involves captive finance solutions, provided by a Tata-owned company named Alliance Finance and the third is a white label solution powered by WesBank.
On the distribution model, Mehrotra confirmed there are 90 outlets across the country.
“There is a disproportionate mix of service centres rather than sales centres alone.”
“In service it is about uptime, which we can guarantee through a variety of mechanisms such as annual maintenance contacts, service packages and additional products bundled in — the Ultra has an extended five-year/500,000km warranty, which is quite significant, that is the confidence we have in the product.”
The executive did not share sales volumes comparisons as we had asked.
“We do not share volumes by country or by model. We are a listed company so must be conscious of the data we share,” he said, but added the sub-Saharan African region was among the fastest-growing for the brand.
“Trust in the brand is a major strength for Tata [locally], the relationship is tenured, why do people trust us?
“Tata Trucks are extremely reliable, as a consequence the value it delivers to the customer is high. Second, the experience we create in sales and after sales, there is a sharp focus on strong after sales — whether parts availability, service or affordability.
“Third is the ease of doing business with an Indian brand, unlike some other makes, where it is difficult to get a relationship. The ethos is different. A simple example is the level of customisation we are willing to do with finance.”
Asked where the brand could improve, he said there would be scope for more locally-assembled products in the market.
“In Tata Motors it is not about one mega initiative — it is about continuous improvement, building a business and proposition for our customers that will live for generations to come and we are on that journey, whether products, services or solutions, we will bring all three together to grow trust in the brand.”
MORE: